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Technology Stocks : Newbridge Networks

NN 16.41

-1.7%

Dec 12 9:30 AM EST

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To: Robert Lumb who wrote (13686)	10/15/1999 10:28:00 PM
From: gbh	Read Replies (2) of 18016

If NN meets expectations this quarter I'm sure the stock price will rebound significantly. If they do not meet expectations things could get ugly. The ugly part is easy. The real question is how far NN rebounds if earnings just "meet"? Last quarter they exceeded, and proceeded to fall about 25%. Of course, there were some balance sheet issues with inventories, AR, and DSOs. Analysts generally get suspicious when these things grow faster than revenues. Too much uncertainty when these things get out of whack. I believe they would do better to just "meet" earnings, and present a pristine balance sheet, rather than trying to beat by a few pennies, by maybe shipping product into warehouses on perhaps flimsy agreements with customers, which these items seem to indicate. I mean geez, AR exceeded revenue. None of these issues exist with big three equipment suppliers. Gary

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