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Technology Stocks : Newbridge Networks

NN 16.57

+1.3%

2:02 PM EST

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To: MD Bryant who wrote (13720)	10/19/1999 12:18:00 AM
From: Doug	Read Replies (1) of 18016

MD.B: The Telecom expansion is so overextended that it is one of the major causes of Asset Inflation. See:http://messages.yahoo.com/bbs?action=m&board=4687030&tid=nn&sid=4687030&mid=10098 Because of this, many of these Companies will see their return on Equity diminish resulting in an earnings squeeze. Just check on the largest; AT&T where Investors have bailed out. As these Companies feel the pinch, they pass on the squeeze to their Suppliers. The second Tier Companies that have the least stability of earnings are the ones with little or no bargaining power. It is these Companies from whom the maximum concessions can be squeezed by the Contracting Broker. Things would be entirely different if there were no other Supplier of Carrier switches. Three years is a long time in the high TECH world. Like the market, I do not see any immediate impact of the announcement on NN's current year Sales/Earnings.

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