Brightpoint Shares Surged: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of cell phone distributor Brightpoint (NAS: CELL) are shining even brighter this morning, up 10% after getting a nod from the friendly analysts at Citigroup.

So what: Musing on the implications of yesterday's Justice suit against AT&T (NYS: T) , Citi says Brightpoint could be a big winner if AT&T is forbidden to acquire T-Mobile.

Now what: Citi hedges that there's no guarantee the Uncle Sam will trump Ma Bell. But, if it does, that would suggest Brightpoint will keep on selling cells to T-Mobile stores -- and enjoy higher revenues than it will if AT&T wins its prize.The downside to all this? Now you, the Brightpoint investor, have one more thing to worry about -- if the U.S. loses its lawsuit, and AT&T does succeed in buying T-Mobile, you can expect Citi will re-downgrade your stock.

How will this story play out?Add Brightpoint to your Watchlistand find out.

At the time this article was published Fool contributorRich Smithdoes not own (or short) shares of any company named above.Motley Fool newsletter serviceshave recommended buying shares of AT&T. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners