Z,
Amazing how Rob's head works. I can understand why Kearns let him go; and why one of the weakest Canadian Financial Institution performers picked him up. Without being overly judgmental, what a moron! ;-)
But another analyst, who asked not to be identified, said Newbridge is in a precarious position because of its dependence on
ATM growth.
He said that if investors buy the story that ATM is going to take the company back to its former earnings heights, the company
would have to post 50 percent growth in the ATM area next year ...
Duhhhh!!! Given that NN has had 45% growth sequentially quarter over quarter, is bringing in new customers at a rapid pace, might they get the other 5% this mental midget says is required? Now that's a tough one.
... in the face of faster, better switches from U.S. competitors
such as Cisco Systems Inc. (Nasdaq:CSCO - news), Ascend Communications Inc. (Nasdaq:ASND - news) -- soon to be a Lucent Technologies Inc. (NYSE:LU - news) unit -- and Canada's Northern Telecom Ltd (Toronto:NTL.TO - news).
Did Rob conveniently forget that NN has a 50Gb switch being tested by customers now? Or is he just working on getting fired twice within 6 months for his apparent incompetence?
''I think people should view this as the first of two shoes to drop,'' the analyst said.
"I think they'll have decent ATM sales. I think they're in a situation, though, that over 100 percent of their revenue growth is
contingent upon that one box (switch) in the face of new switches that are better and faster for next year from Cisco,
Ascend...and Nortel.
And just where the hell does he think that the major growth for these competitors will come from?
And for that matter, many of the great companies started off with a single product, not even a single product line, let alone the diversity that NN currently has even without considering the work done through its Affiliates and partners. e.g. Coke, Pepsi, Gillette, ... which diversified at a much greater age than NN currently has.
''And if they have so much as a revenue slip from one quarter to the next in ATM, you don't want to be in the same zip code
as this stock. It will get cut in half in an hour,'' he added.
And just what does this mental midget think would happen to CSCO if it reported a Q over Q reduction in CSCO's sales? With CSCO selling at more than double the PSR of NN, the streets would be an ocean of blood.
And to cap it all off, I looked up a$$hole in the dictionary and saw Rob's picture.
FWIW,
Ian. |
