Brightpoint, Ingram Micro Jump-Start IT Products Stocks (CELL, IM, TECD, PCCC, MALL, SCSC)

Tickerspy’s Computer and IT Product Distributor Index

COMPUTER AND IT PRODUCT DISTRIBUTOR INVESTING IDEAS

• Popular long ideas: IM, TECD, SNX
• Popular short ideas: PCMI
• Top dividend plays: None
• Pro favorites: IM, TECD, NSIT

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COMPUTER AND IT PRODUCT DISTRIBUTOR COVERAGE

These firms are square in the middle of the IT supply chain

COMPUTER AND IT PRODUCT DISTRIBUTOR CHART

COMPUTER AND IT PRODUCT DISTRIBUTOR METRICS

Avg. Market Cap:	$1.0B
Avg. P/E Ratio:	11.3
Avg. Div Yield:	0.0%

Shares of Brightpoint (CELL), the provider of solutions to the wireless technology industry, are soaring 15% after the company reported a second-quarter profit of $11.8 million, 18 cents a share, compared with $7.3 million, or 10 cents a share, a year earlier. On an adjusted basis, the company earned 21 cents a share, topping the 15 cents analysts were expecting. Revenue came in at $1.23 billion, handily beating the $1.08 billion analysts were forecasting.

The news has the Computer and IT Product Distributor Stocks Index trading higher by 2.8%. Brightpoint said it managed 26.93 million wireless devices in the quarter, a 21% increase from a year earlier. For fiscal 2011, Brightpoint expects to manage 111-114 million wireless devices, a 12%-15% increase from last year.

Rival Ingram Micro (IM) is getting in on the act with an 11% jump of its own. The California-based company reported a second-quarter profit of 37 cents a share, which just matched estimates, but revenue grew 7.3% to $8.75 billion. Ingram said its sales in North America, Asia Pacific and Europe, the Middle East and Africa all rose during quarter.

The company added that it finished the quarter with $1.38 billion in cash and cash equivalents, up from $1.02 billion a year earlier and that it repurchased $75 million of its own shares during the quarter and $75 million of its own stock in this month. Ingram didn’t provide specific third-quarter guidance, but expects revenue to grow on a sequential basis.

Looking at other Index members, Tech Data (TECD) and PC Connection (PCCC) are up 1%. PC Mall (MALL) is higher by 3% while ScanSource (SCSC) is fractionally higher.

Investors can track the Computer and IT Product Distributor Stocks Index for performance trends and a suite of other metrics at tickerpsy.com.

Tags: CELL, IM, MALL, PCCC, SCSC, TECD