From Lou Bas
IPO #1: Brightstar
(Proposed Ticker: STAR)
I’ve written ad nauseam in Wall Street Daily about how the exploding use
of mobile devices promises to be the biggest technology trend ever.
Consider Brightstar a “pick-and-shovel” way to play this boom.
Per its IPO prospectus, the company provides value-added services to key
participants in the wireless device industry, including manufacturers,
operators, retailers and enterprises.
It helps mobile firms increase profitability by allowing them to outsource
critical operations like distribution, manufacturing, marketing and supply
Ultimately, the company’s sales are tied directly to the growth in the wireless
industry. And there’s no refuting the growth in the mobile industry. So
Brightstar meets our criterion of possessing a “verifiable” growth opportunity.
In terms of age, the company passes muster, too. It was founded 14 years ago.
It’s an established company, not an unproven outfit, trying to rush to the
Total revenue passes the $50 million threshold, too. By a country mile.
In the first quarter of 2011, Brightstar booked almost $1.3 billion in sales.
Last but not least, the company is profitable. Net income hit almost
$18 million during the first quarter.
If the price is right (i.e. the shares begin trading at a reasonable valuation),
come on down! Because Brightstar is a no-brainer buy.