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Technology Stocks : Brightpoint - CELL -- Ignore unavailable to you. Want to Upgrade?

To: Brian Lempel who wrote (849)	8/24/1998 7:45:00 PM
From: IndyTom	Read Replies (2) \| Respond to of 1999

Spelling, Asia, margins, Bob & Phil, and ERICY comments. Maybe that "looser" BUYCELL should hang himself with a "nose". As you may have seen from my post over on AOL in response to a question about CELL's weakness, I simply believe an awful lot of this sell-off is market related and not CELL-specific. There are just too many stocks out there that have been trashed like CELL beyond any rational level. (At least my portfolio seems to be full of too many of them.) As far as the margin and Asia thing I am not sure about your guarantees nor how much absorbing into other markets would occur. Certainly the way Phil ;-) related that the company immediately pays for goods securing a cost basis in local currency seems to ensure their margin (in local currency). It's the translation of that margin and profit back to a US income statement that would be potentially impacted. I wouldn't think the company would have to "absorb" inventory into other markets because at the rate that they turn inventory it wouldn't need to happen. As the turn rate slowed they would simply reduce new orders appropriately. Hence no need to move inventory to other markets. Moreover, the upper economic tier of Chinese buying these products will likely not be experience much decline in demand so the need for incentives and lower prices may not be much of an issue either. Finally, the ERICY news about Brazil reminded me of our posts here last week discussing CELL's "weakness" in its Latin American exposure. This announcement certainly bolsters confidence that CELL will wind up with the appropriate manufacturer relationships to fill-out its exposure down there. I think "Bob" ;-> would agree. Good luck with school. Do I dare ask what you are working on? Tom