Brightpoint (CELL)

Company

CELL 1-year chart CELL 1-year chart

"Brightpoint, Inc. is a global leader in the distribution of wireless devices and in providing customized logistic services to the wireless industry. In 2006, Brightpoint handled 53.5 million wireless devices globally. Brightpoint's innovative services include distribution, channel development, fulfillment, product customization, eBusiness solutions, and other outsourced services that integrate seamlessly with its customers. Brightpoint's effective and efficient platform allows its customers to benefit from quickly deployed, flexible, and cost effective solutions. The company has approximately 2,100 employees in 15 countries. Revenue in 2006 was $2.4 billion and net income was $35.6 million." (company website)

CELL 6-month chart
CELL 6-month chart

Buy

CELL was in a steep downtrend until March, when it turned around and started to climb steadily, gaining $4 (about 40%!) in a one-month period. After falling back to the 200-day moving average, CELL has started to climb again, and the 50-day moving average just crossed above the 200-day moving average, usually a bullish sign.

  • Price momentum (PPO) — rising gradually after a long decline
  • Relative strength (RSI) — strengthening again after a decline
  • Trend (ADX) — still very strong, and although buying pressure (+DI) has fallen off slightly, so has selling pressure (-DI)
  • Volume — decreased slightly over last month, but still close to 2M shares/day.

Based on technical analysis, MarketEdge calls CELL a "buy" in a "strong upward trend."

Sell

gain Bottom line
3%

The chart for CELL has been weakening in recent days: average daily volume has fallen off slightly, relative strength (RSI) has dipped, and buying pressure (+DI) has fallen off. Although there's nothing in the chart — that I see — to make me think CELL has reversed, I do think it is probably into another down-cycle, perhaps on its way to touching up with the 50-day moving average.

Since even a small profit is better than a poke in the eye, I'll step to the sidelines and wait for the next up-cycle.