The Thread Formerly Known as No Rest For The Wicked Message Board

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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked

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To: Kik who wrote (74233)	11/19/1999 12:45:00 PM
From: Ellen	Read Replies (2) of 90042

NN -- Netwrk & Comm Dvcs -- Technology 19-Nov-99 11:25:19 While word from management regarding the potential sale of the company failed to counter the negative reaction to Newbridge Network's weak 3Q results, it certainly grabbed the attention of the institutional community. After the close on Thursday, Newbridge reported a 3Q net of $0.08 per share, a penny shy of the First Call consensus estimate. The firm also announced a new restructuring plan that includes a 10% workforce reduction and said it is reviewing all strategic options, including the possible sale of the company. Newbridge has fallen $2 7/8, or 12%, to $21 1/8 while trading volume has already surged to 2.4 million shares which puts it on pace to easily eclipse its average daily volume of 3.6 million shares. Block trading is at heightened levels, accounting for about 40% of total volume. So who's buying and who's selling? Well, the stock had a nice run-up going into its earnings announcement, posting a 22% gain in November through yesterday's close. So it's not surprising to see some profit taking from investors who would like to cash in now rather than wait it out as the firm looks for a potential buyer to come along - particularly, given the fact that no one knows if a buyer will actually come along or not. On the buying side, the activity most likely stems from investors with a stronger risk-tolerance who are buying on hopes of a favorable bid from another firm. These are the investors behind the pre-trade bids on I-Watch who are taking a pro-active approach to buying stock. While the demand has yet to rise above the supply from the disappointed shareholders, a near-term balance between the two sides has been found in the $21 1/4 range.

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