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.

March 18, 2010 - Brightpoint, Inc. (CELL-NASDAQ) provides supply chain solutions to the wireless technology industry. The company offers customized logistic services, including 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, repair and remanufacture services, reverse logistics, transportation management, sale of prepaid airtime, and other services within the wireless industry.

The company serves mobile network operators, mobile virtual network operators, manufacturers, independent agents and dealers, retailers, wireless equipment manufacturers, and other distributors. It has operations in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. The company was formerly known as Wholesale Cellular USA, Inc. and changed its name to Brightpoint, Inc. in September 1995. Brightpoint, Inc. was founded in 1989 and is based in Indianapolis, Indiana.

Brightpoint was last featured in this column in December, 2009. It's up 73% since then with most of the gain in the last 6 months. While the recession cut into sales, it only hit profits hard in 2008 when earnings per share went from 49 cents a share to 9 cents. Then they came back to 21 cents followed by 88 cents last year. This year, 10 analysts see 98 cents, then $1.17 for 2012. For the next 5 years, expectations are for earnings to grow, on average, 13.5% a year.

Brightpoint is at the forefront of the latest trends in wireless networks, especially in smartphones and data-capable devices. Old phones that only allow for talking or texting are out. Consumers now demand video, data, music, and other applications as well as a clear signal for phone calls. Brightpoint supplies many of the devices and services that supply these choices. It also provides services and products for tablet computers (can you say iPad?).

This is a global company with manufacturing capabilities in the U.S. and 25 other countries. 2010 revenues were 54% from Europe, Mid-East and Africa; Asia Pacific: 28%, and the Americas, 18%. Profits came from product distribution (67%) and logistics services (33%). In 2010, the company handled about 99 million wireless devices globally, and provides distribution and customized services to over 25,000 B2B customers. CELL uses what it calls Center of Excellence hubs to service regions around world. The latest was just opened in Boras, Sweden for the Nordic region including Sweden, Denmark, Norway, Finland and the Baltics. It's a 145,000 square foot facility, equipped to handle all mobile handset, modem and equipment business needs. Look for more openings internationally for Centers of Excellence.

The company is also buying others. It just purchased Touchstone Wireless Repair and Logistics for $75.7 million. It specializes in reverse logistics which enhances CELL's portfolio of services.

Essential numbers: Trailing P/E is 28.5 but the Forward P/E is only 10.4. Price to sales is .23. Price to book is 3.39. Operating margin for the last 12 months was 1.94%. Profit margin was .84%. Return on equity was 14.90% while Return on assets was 3.85%. Total cash is $41.66 million for 66 cents a share. Total debt is $90.41 million. Debt to Equity is 37%. Current ratio is 1.03. Book value per share is $3.62. Beta is 1.75. There are 67.97 million shares outstanding with a Float of 60.21 million. Insiders have 1.16% of the stock. Institutions have 91.10% of the Float. There is no dividend.

The future looks very bright for Brightpoint. While still a relatively small stock in terms of Market Cap, it serves a large market which looks like it will only get larger as more consumers and businesses demand more from their mobile devices. Sales and profits should only grow. But at what pace? That's always the question. Aggressive investors with a tolerance for smaller stocks will find the complete story compelling. From the stock's price action in the last year, many already have.