Tuesday, November 08, 2005
CELL reported results ahead of expectations on both revenues and EPS. For those of you who do not know what CELL does, a quick introduction is in order: CELL is a distributor of handsets for various carriers throughout the world. CELL also distributes accessories for handhelds. CELL usually has great visibility into the end-market demand. Overall it seems as though handset demand remains strong as companies delivered units over the expectations. CELL tells us that channel inventory is lean and that means Q1 might be stronger than seasonality and that is usually good for handset food chain including RFMD, SWKS, MOT, NOK, QCOM, TQNT, TXN, BRCM, LG, Samsung and ERICY. This is just some tea-leaves to keep in your mind, one data point does not make a investment necessarily.