I have to wonder if MacLellan is:
1. Short;
2. Misinformed;
3. A Liar;
4. All of the above.
According to the WSJ, Nortel did get the ATM equipment orders which is a positive for NN. He must be hurting real bad as he hopes for a price of C$32 as the stock continues to move toward C$55.
Tuesday June 2, 4:53 pm Eastern Time
Newbridge stock gains ahead of Q4 earnings
TORONTO, June 2 (Reuters) - Shares in Newbridge Networks Corp. (NN - news), which has unveiled a string of disappointing
quarters, ticked up on Tuesday on expectations of strong fourth quarter results.
Stock in the telecommunications equipment maker added 1.55 to 41.70 in brisk trading of 1.1 million shares on the Toronto Stock
Exchange.
On average analysts predict profit would be steady from last year's number at $0.15 a share, according to investment research firm
First Call. But whisper estimates -- the unofficial upward or downward revision of quarterly numbers discussed among those in the
know -- are $0.15 to $0.16, said Rob MacLellan, Kearns Capital analyst.
MacLellan added that he was taken aback by the stock gains, given Tuesday's news that Sprint Corp. (FON - news) announced plans
for a partnership with Cisco Systems Inc. (CSCO - news) to develop a very reliable telephone and data network.
''It excludes Newbridge, for all intents and purposes (it) excludes Nortel (Northern Telecom Ltd. (NTL.TO - news)), which we view
as mildly negative for Nortel and extremely negative for Newbridge,'' MacLellan said. ''All in all, I would have expected Newbridge to
be down at least as much as it currently is up.''
Some investors believe that Sprint's agenda stamps a seal of approval on the same type of technology that Newbridge offers,
MacLellan said.
But MacLellan, who had downgraded Newbridge to a rating of reduce a week ago, said that Newbridge failed to develop a broad
product portfolio. He gave the stock a target price of C$32 a year out.
($1 equals $1.46 Canadian) |
