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Technology Stocks : Newbridge Networks

NN 13.69

-2.5%

3:59 PM EST

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To: Tunica Albuginea who wrote (15039)	11/24/1999 1:31:00 PM
From: Tunica Albuginea	Read Replies (2) of 18016

CSCO in the wings? From YHOO:( I post this as a service to the community, <bg>: it allows people to avoid reading " yahooliganisms "). CSCO...WAY by: daplus4 Msg: 12572 of 12575 11/24/1999 12:45 pm EST messages.yahoo.com CSCO...WAY you say no way, I say way..here's why. At a market cap approaching 300 billion they need to keep growing to keep the house of cards from crashing down. They spend 6+billion on a company that adds nothing to the bottom line for at least another year and then only IF they can integrate the technology. Plus this optical play only addresses a portion of the market. They don't have an ATM product, need one and can get carrier class 36170 PLUS the 50/450 gig pipeline. Have taken the major Telco's to the altar several times with promises only to dissappoint hence they have NO real presence and badly want/need one here. LU has ATM and also working the optical angle and have the customer base so why would someone opt for Cisco when they have a proven track record with LU. Same goes for NT. Cisco has no presence in Europe and very little in Asia. Cisco does have a huge enterprise base of customers where the 3dsl/LMDS products could ROCKET earnings(little to no overlap). Sprint has annonced that they will not be using Tellabs patchwork solution for broadband and will be moving forward to an ATM solution for the grooming capabilities.(go to Tellabs BB for press release). This is another vote for ATM at a MAJOR level. Sprint ION contract for 1 billion to deploy ATM and have not been able to deliver. MCI Sprint merger is now up for grabs(on contracts) and LU's debocle in Chicago would at least lead one to credible speculation that NN's 36170 PLUS the 50/450 products could very well be Cisco's answer to finally perform in the ATM arena. This is a match made in heaven and Chambers is no dummy. He HAS TO KEEP THE TRAIN ON THE TRACK or face a huge correction. With his stock price up in the $85 range, they can buy NN for 12 billion with only the appreciation in there value in the last 60 days....In other words its free!! Cisco routers will soon start to be looked at as a "mature market" which has different valuations (certainly not a P/E of 117...) With this aquasition they will cut into LU and NT and NT could be devistated as their Passport switch is there but not widely accepted. If Seimens doesn't play it will only be because 5they will have already (behind the scenes) have struck a deal to continue/expand the distribution agreement and overnight make Cisco a player in Europe. messages.yahoo.com CISCO could pay 12 billion for NN with only the last weeks stock appreciation.ÿ The CSCO ATM product is currently nothing more than a glorified router, no ÿprogramable, limited scalability and limited manageability.ÿ They did not want to go in and write the millions of lines of code to upgrade it so they ÿscrapped it for all intents and purposes. The marketing hype in the post you gave a link forÿ is just that hype. Proof is in the contract won, or in Cisco's case, ÿeven considered for.ÿ They are not currently nor will they be anytime in the forseeable future "carrier class".ÿ

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