"On the strength of two key acquisitions, Brightpoint (NASDAQ: CELL) has become the largest global distributor of wireless devices," says quantitative analyst Vahan Janjigian of Forbes Growth Investor.

"The acquisitons helped boost the number of wireless products handled in 2007 by 55% to 83 million. The company is also the leading provider of customized logistics services to the wireless industry.

"CELL purchases cell phones, batteries, chargers, and memory cards, and then sells them to a global network of 25,000 customers.

"The objective is to acquire distribution rights to products offering the greatest potential for growth. It sells brands made by LG Electronics, Nokia, Kyocera, Motorola, Samsung, Sony, Siemens, and Ericsson. This category produced 92% of total 2007 revenues, but it had a gross profit margin of just 4.24%.

"Market conditions have been favorable in recent years as worldwide wireless penetration grew at a brisk pace. Acquisitions helped boost Q4 2007 revenues by 140.6% year-over-year to $1.63 billion. Adjusted net income grew 127.3% to $25.7 million or 31 cents per share.

"CELL is more recession proof then most consumer products companies, yet significant deterioration in
consumer spending could negatively impact sales. Industry consolidation could also hurt sales and profits.

"Finally, manufacturers could always decide to sell their products directly to customers. Recent weakness in the stock suggests these fears are largely priced in. We believe favorable trends are more important.

"These include increased attractiveness of converged devices, growing appeal of high speed mobile networks, and continued growth of wireless phone penetration in emerging markets such as India and Latin America."