CLST looks very good to me, but several things bother me a lot. Why is PE ratio so low while two competitors PE ratios are 24 and over 30? Do I miss anything? The future of the company looks good to me but why brokeges are upgrading its competitors? I am new on this board, please help!
The reason CLST will have an upside surprise will be due to the China revenue. This has not been included in the estimate because additional orders were received at the end of the first quarter and some even at the beginning at the second quarter. The estimates were already formed by then. In my opion they will report someting with a 6 in front of it. (60-63). I am not worried at all about earnings, I think the key question is does the market give a shit about CLST. How can they up interest, where is Oppenheimer, they have covered CLST with a strong buy but are not buying themselves. Matter of fact, if you look at Nasdaq level II you will see that Oppenheimer was the big seller when CLST was under pressure. Now, this may be as a result of their clients pressure but Oppenheimer is known to be a very weak promotor of their picks when these are under pressure. Let's get some retail in here! We need DLJ, Merrill et all.
China is still a third world country by almost every standard. They are not using cell-phones as a yuppy/luxury/status symbol/convenience item like the western societies. They truly do not have land lines in place to service private and residential markets. Cellular technology is the cheapest method of personal communication that exists over there. However, your comment:
"CLST is the lagest retail in Asia, the earning has to be better than expected." P.S. Watch spelling with this msg board :) :)
I don't necessarily agree. I am sure that forecasts have accounted for Asian sales. I think that this observation serves to show that growth in this sector is eminate in China. However, Cellstar is already projected to grow EPS at 30%/year and I am sure that that these forecast have taken into account growth in the Chinese market.
the past messages as far back as you can handle for BOTH cell and CLST. Look in sec filings, check out motorola, nokia, ericsson etc. After thats done you should know where to look next, it really is worth the time to not only buy into this company but to know WHY. Do you know anyone that's bought a cell phone lately?...will they keep on buying? ask and read, ask and read.