This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

October 2, 2008 - Brightpoint, Inc. (CELL-NASDAQ) distributes wireless devices and accessories, as well as provides customized logistic services to the wireless industry. Its logistic services include procurement, inventory management, software loading, kitting and customized packaging, fulfillment, credit services and receivables management, call center and activation services, Web site hosting, e-fulfillment solutions, reverse logistics, transportation management, and other services within the wireless industry.

It serves mobile network operators, mobile virtual network operators, resellers, retailers, and wireless equipment manufacturers. The company has operations in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.

It was formerly known as Wholesale Cellular USA, Inc. and changed its name to Brightpoint, Inc. in September 1995. The company was founded in 1989 and is based in Indianapolis, Indiana.

Here's the scoop: Earnings are about to turn around after showing a drop in 2008, going from 49 cents a share in '07 to 37 cents. Consensus from 9 analysts is for 47 cents this year, then 66 cents next year. With a price of $7 a share, the stock becomes a very attractive candidate for more investigation.

CELL hit its all-time high in 2006 at $28.50 (reflecting several stock splits). From that point until late last year when the stock bottomed at $2.90, it's been almost all downhill. But there's been a bounce. The stock rallied from $3.06 in March to $9.29 recently, only to pull back to its current level. Can it resume its upward trend?

Things are better for the company and the industry. In the third quarter, wireless devices handled improved almost 8% and were up 10% sequentially. Also improving were cellphone prices. Operating costs were lower, thanks to a cost cutting effort begun in early 2009. Interest costs are low. Some European offices were closed due to poor sales. While earnings were lower compared to last year's third quarter, they were above the second quarter of 2009.

The company seems ready to make money in India, an elusive goal for some time. Its European operations should also contribute more to profitability as management focuses on reorganizing its operations there. CELL is in the U.S. and 24 other countries. Revenues in 2008 were: Asia-Pacific: 51%; the Americas 32%; Europe: 17%.

More numbers: Price to sales is a very low .16. Price to book is 2.09. Book value is $3.43. Revenues for the last 12 months were $3.45 billion. Total cash is $80.26 million which is $1.02 per share. Total debt is $98.82 million. Current ratio is 1.35. Beta is 1.64. There are 78.9 million shares outstanding with a float of 66.7 million. Insiders own 12.85% of the stock. Institutions have 80%. There is no dividend.

Aggressive investors usually like turnaround stories. This stock has definitely had a turnaround in price, coming up from $3.06 in March to $9.29 in September of this year. Now it's trading below that. But if the prospect of better economic times ahead is part of your forecast, this stock should be one that benefits as consumers upgrade their cell phones to the newest offerings. The fact that 3G networks continue to expand will also be a positive factor as the latest in broadband technology delivers more and better services.

Company Web site: www.brightpoint.com

- Ted Allrich