Brightpoint (CELL)


CELL 1-year chart CELL 1-year chart

"Brightpoint, Inc. is a global leader in the distribution of wireless devices and the provisioning of 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, E-Business 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." (company website)

CELL 6-month chart
CELL 6-month chart

Sell short

After the triple-bottom at the beginning of 2007, it looked like Brightpoint might be turning the corner. However, it has started to drop again and has fallen below the 50-day moving average and is close to the 200-day moving average.

  • Price momentum (PPO) — falling
  • Relative strength (RSI) — falling
  • Trend (ADX) — strengthening, with selling pressure (-DI) above buying pressure (+DI)
  • Volume — falling steadily

Based on technical analysis, MarketEdge calls CELL a "short candidate" in a "weak downward trend."

Buy to cover

gain Bottom line

I am so confused! On Monday CELL traded as low as $11.94. Today, two days later, it traded as high as $13.29. There had been no news to explain this sudden enthusiasm for CELL. After the bell, Brightpoint released earnings, reporting profits of 35¢ compared to an expected 15¢. Revenue was up 55%. I thought my goose was cooked. Then when I looked after hours, CELL was down .66 from today's close. Say what! I put in a buy to cover order at $12.10 (the previous trade was $12.24) and crossed my fingers. To my great astonishment, the trade executed immediately. There were obviously a lot of people wanting desperately to sell.

I don't understand, but I am so relieved!