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Technology Stocks : Newbridge Networks

NN 13.73

+5.9%

11:25 AM EST

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To: gbh who wrote (12977)	8/25/1999 8:42:00 AM
From: Peppe	Read Replies (1) of 18016

Gary, You bring up two very good points. DSO (or receivables) are higher and that does sound off an alarm. I also agree with you on the point on inventory. However, Alan can't be expected to perform miracles. Solving NN's supply chain issues should take a couple of additional quarters, so the only way to get product out now is to increase inventory on hand. It was made clear that this was a short term situation and I don't think the street will penalize NN for that. As fror the receivables issues, I don't think it's fair to compare NN to CSCO's situation. NN's DSO is more in line with LU, which has a similiar mix of carrier business. This is something that I would watch carefully however over te coming quarters. All in all, I'd say Alan is on the right track with NN. He's starting over with wall street and he has to regain their confidence with continued performance over the coming quarters. I'd say the NN team is back on track, IMHO.(PS, currently holding no NN positions) Cheers, peppe

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