INDIANAPOLIS, Feb. 23, 2006 -- Timothy S. Durham, and Henri Najem both of Indianapolis, and Pat O'Donnell of Chicago, have announced that they have accumulated over 5% of the outstanding stock of Cellstar Corporation (OTC Pink Sheets: CLST), a large cell phone distribution company located in Carrolton, Texas. Together the group owns 1,249,000 of shares.
Durham is Chairman and CEO of Indianapolis based Obsidian Enterprises and has major investments in over 20 different companies around the world. Obsidian Enterprises is a publicly traded holding company headquartered in Indianapolis, Indiana that invests in small and mid cap companies in basic industries such as manufacturing and transportation. Obsidian Enterprises, and its companies, can be found online at http://www.obsidianenterprises.com/.
Najem is an individual investor and is the Proprietor of Bella Vita Restaurant on Geist Lake in Indianapolis, Indiana.
O'Donnell is retired from the UBS Investment Bank where he was the CIO and a member of its Management Board. He was at UBS (and its predecessors) from 1989 through 2003, where he served on various senior management and corporate governance bodies driving the operational and strategic direction of the firm. Over the last 2 years, he has been a private investor looking for under-priced small cap growth stocks.
"We believe that, as of late, the market value of Cellstar has been unreasonably depressed due to the Company's challenges in China. Nevertheless, their recent sale of their Asia Pacific division should pave the way for the company to begin growing and to return to profitability. They are in a growth industry, and we feel the company's share price is not reflective of the intrinsic value of the company," stated Durham.
Mr. O'Donnell added, "We hope to work with the company to return the company to its former glory, allowing it to be the preferred supplier of distribution and logistics services, as well as a premier workplace for its employees. These will be the first steps in leading to a superior return for its shareholders."
Durham and Najem most recently joined forces when they acquired a substantial stake in Brightpoint, announcing they had acquired over 5% of that company's stock in 2002.