< The investment firm made two comments: 1) that NN was pricey and 2) that their market might move away from them.>
Pat,
Let's try this again. In defending the 2 comments one might argue that
1- Newbridge is pricey relative to it's past performance (surely before you invest in a company you research its past performance; I do and good analysts do as well). NN can also be construed as pricey compared to other competitors who make similar products (ASND,CSCO,NT to name three that come to mind)
2- The arguement that the market is moving away from NN can be taken several ways. What I think the analyst was referring to was the shift away from ATM back-bones to Layer 3 Router/Switched back-bones. That was where my comment came from.
Maybe he was referring to NN's diminishing TDM business, which is still significant. Unlike ASND, NN's revenues are not all in emerging, fast growing technology. As the TDM market dies, can NN make up the revenue loss in other products ?
As far as your NN press releases on their Layer 3 awards, I suggest you visit the latest market share report from Dell'Oro (I can find the URL, but I think you know which one I am refering to.). Newbridge is an ATM vendor with no router market share, a dying TDM business and will have to be bought to survive. The only reason to own this stock is if you feel a buy-out is imminent. All IMHO, of course.
Pat, I respect your opinions but I sense a little emotion in your evaluation of this company. Never a good sign when one is investing one's hard earned money.
Cheers,
Peppe |
