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Technology Stocks : Newbridge Networks
NN 14.21+1.7%Nov 28 9:30 AM EST

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To: Serge Collins who wrote (3041)2/3/1998 9:48:00 PM
From: Dan Hamilton   of 18016
 
The fact that Newbridge has a profit margin half that of Cisco's is certainly a problem, but it's also a very big opportunity. When many large cap companies were rocked by recession in the early 90s they increased profit nicely by restructuring and cutting costs. If Newbridge can do that while continuing to grow revenues, the result could be very good indeed.

Anyone care to run their numbers based on a 15% or 20% profit margin?

Dan
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