Newbridge Networks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks

NN 12.64

+3.2%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Doug who wrote (7581)	11/20/1998 11:38:00 AM
From: pat mudge	Read Replies (2) of 18016

Let us assume NN has won the $750m contract by itself. That contract is very likely to be spread out over a 2 year period or more. Thus the added sales for NN amount to $90m/quarter. This Company has to generate near $350m/quarter. So at the very best this would amount to 25% revenue. Whilst this is a good step , it cannot sustain a $8 move in price in one week. Several points --- first, I wouldn't assume NN will get $750 million, but would take a more conservative $500 as my basis. Spread over 8 quarters is roughly $62 M per Q or $0.35 a share. And you're saying that isn't significant enough to justify the recent move? At 25.5 NN's selling at 4.25 X sales. Add $1.40 a year and it's selling at 3.5X. ASND is currently selling for 8 X sales, FORE at 5 X, and XYLN at 7 X. You do the math and tell me where NN should be selling. Later --- Pat

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next