Silicon Investor (SI) -- The First Internet Community

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.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: marc ultra who wrote (6195)	6/22/1999 10:21:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 15132

NN is on the cusp of introducing a hugely successful new ATM product. NN owns the ATM WAN market for Carriers. It's moving into the large enterprises and ISPs - ASND's former turf. It's ATM growth in orders has been compounding at 45% + per QUARTER (yes, I said per quarter) for the past 2 reports. ATM Earnings have popped up 30% / quarter with backlog increasing. NN has 15 production contracts for LMCS (called LMDS in the States) and another 13 trials underway with another 30 prospects being pursued. LMCS / LMDS will contribute $1B to revenues in the next 3 years (including 1999). Thereafter, the growth will be exponential. No other equipment supplier comes close to NN in terms of this wireless broadband technology built using its ATM switch. Not CSCO, Not LU, Not Nortel which is currently engaged in a shootout with NN at Teligent and losing the battle and war. I like NN almost as much as MTSN. But then NN is more of a reality today. MTSN still has to win some new customers before my expectations for its massive outperformance become reality. NN has the products. It has the customers. The ramp up for both ATM and LMDS / LMCS are underway. ... with ATM WAN being about a year more advanced. NN's trouble has been consistency and execution. It's missed 5 out of the last 8 quarters. A new President and CEO was brought in. He has successfully transformed NN from a technology company to one that also has a very professional marketing / sales force as well. He's now completing the clean up of the operations to better ensure that NN delivers the orders that it receives as received rather than building up the backlog. That process may be completed this quarter for all practical purposes. Next quarter at the latest. So yes, I believe that NN will outperform the market, its sector and many stocks in this sector during the next 2-4 years. It has outstanding coverage in both Canada and the States. It needs to establish credibility that it will consistently meet expectations, that it will do what it tells the street it will do. It has one analyst that it has irrevocably turned off: Rob MacLelland who is now with CTSecurities. Rob has a Sell Quickly: Nuclear Waste Hazard rating on NN. I don't know the history on this one, but suspect he got his a$$ kicked for believing NN before they missed an estimate. The rest seem to be willing to listen, learn and give NN an opportunity to show it's a worthwhile investment. I'm already convinced. I could be wrong. I've been wrong before. But not today. :-) Ian.