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Technology Stocks : CLST - CellStar Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Hay who wrote (231)	1/21/1998 12:51:00 PM
From: HVN	Read Replies (1) \| Respond to of 641

The BIG problem is that you're looking at CLST as a wireless company. It's NOT! It's a distributor - it just so happens that they are distributing wireless phones. And with ANY distributor, inventory IS an issue! It would be good to have excess inventory in an industry where there's a shortage - or at least one expected. But there isn't one anticipated here - expect maybe in domestic digital phones. However, it's not like CLST is going to get priority for these phones - at least not over the carriers. look back to one of my prior emails about roughly how much historic profitability CLST has derived from Asia - especially Korea and China. Given these facts, they ARE going to hurt in Asia. If I'm not mistaken, they also have a lot of distribution to S. America - now if that market picks up the slack, they might do well. In the US, they will continue to see their margins squeezed.