Pat,
It would also appear that several of the posters here are underestimating the significance of winning a US Government Contract.
... and they're almost certainly underestimating the significance of winning a contract with the US Military.
Newbridge Networks (NYSE: NN - news; TSE: NNC - news) today announced that it is providing a high performance networking solution to support the mission critical communications requirements of the U.S. Defense Department's agencies stationed in the Republic of Korea (ROK). These agencies, which include the Air Force, Army, Navy and Marines, protect the demilitarized zone separating North and South Korea.
First, it is not an easy feat to win such a contract.
Second, neither the US Government nor the military is noted for frugality. Finally NN gets to sell a $240 hammer. ;-)
Third, immense credibility has been an immediate result with other large corporations. Evaluating any type of technology for use in mission critical applications is an expensive process both in terms of time and money. Many corporations will be be encouraged by the military's selection of NN.
And finally, for those who believe that the G1 contract is fully factored into the price of NN, I suggest they take a look at a chart of NASDAQ:QLTIF or TSE:QLT. It has almost tripled on expectations of today's announcement with more to come once they get their NDA from the FDA. (Sometime around 2nd or 3rd quarter of this year).
JMO,
Ian. |
