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Technology Stocks : Newbridge Networks

NN 12.60

+0.7%

3:59 PM EST

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To: Tunica Albuginea who wrote (17319)	2/20/2000 5:03:00 PM
From: Thomas Scharf	Read Replies (1) of 18016

For the last couple of months I lurked on this thread reading posts that say 2 things: 1)NN will be sold BEFORE earnings are reported. and 2)NN's earnings will beat estimates. My problem is that if #2 is true, the board of directors would be violating it's fiduciary responsibility to get the maximum value for stockholders by selling out in advance of the earnings report. Blow-out earnings would inevitably raise the buyout price & might even lead to a bidding war if it can be shown that NN's problems are in the past. If management is finally on track, there is no reason that NN doesn't deserve a PE of at least 40 (currently around 21) & possibly as high as 100. Heck, even lowly 3Com has a PE over 50! LU, which has been supporting earnings (and disguising horrible management, by tapping an over-funded retirement plan) has a current PE of 78! Give me a break, and give me at least US$70 for my NN shares. Anything less is just surrendering to fatigue on the part of those who have held this stock a long time without seeing the hoped for returns. Just my US$0.02

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