What, me worry?

October 31, 2003

Brightpoint (CELL) investors probaby couldn’t be happier these days. Since July, the stock has split twice. Around this time last year, the stock was trading at under a buck. Now, it’s around $27. Much of that is because business is booming in Asia, where Brightpoint has the majority of its sales. Still, poking around in the Q filed yesterday, the discussion about selling accounts receivable should stand out for investors. While it’s not always a red flag, it certainly can be because it can make cash-flow look better than it otherwise would. According to the Q, the company sold $200.4 million in receivables for the nine months ended Sept. 30, up about 1/3 from last year. Given Brightpoint’s recent history with the SEC — it paid $450,000 to settle fraud charges last month, though it did admit or deny the SEC’s allegations — the accounts receivable is certainly worth paying attention to.

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