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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (12260)	7/14/1999 3:10:00 AM
From: Jim	Respond to of 18016

Wall street and the NEWS Media did it again [They did it to ORCL back a few months ago.This type of stuff will be looked into and stopped by the SEC.I will give them the call in morn. As far as NN goes, its a great buy here,and look for a pop in morn,but not over 30.Should go back to old high after options expire fri.CNBC [GE] PLAYED A BIG ROLL IN BOTH ORCL and NN SCAMS

To: pat mudge who wrote (12260)	7/14/1999 6:08:00 AM
From: Glenn McDougall	Respond to of 18016

Newbridge ups, downs Rumour of downgrade sends stock tumbling, forces market halt By KEVIN BELL, Ottawa Sun THE SHARE price of Newbridge Networks Corp. went on a roller-coaster ride yesterday after rumours circulated that a prominent analyst had issued a downgrade on the stock. The stock plunged 15% to $36.55 before trading was halted in both Toronto and New York to allow the markets to catch up with a flood of sell orders. After it resumed trading, the stock recovered slightly to close at $39.50, down $3.65 or 8.5%. The news service CNBC reported BancBoston Robertson Stephens and Merrill Lynch & Co. analysts told some clients Newbridge may not meet expectations for the quarter ending July 31. Some analysts said they heard rumours that Robertson Stephens analyst Paul Silverstein had downgraded Newbridge stock. Silverstein didn't return phone calls yesterday, but his assistant insisted he had not issued a downgrade. Merrill Lynch denied the report. But the rumours spread like wildfire through the investing community touching off a flood of selling from jittery investors, who have witnessed several profit warnings from the Kanata company in the recent past. "The blood was in the water and the traders decided to take it down," said Paul Sagawa, an analyst with Sanford C. Bernstein & Co. Michael Neiberg, an analyst with Hambrecht & Quist, said the current quarter is a crucial test for Newbridge. The company disappointed analysts in the last quarter, but said manufacturing snafus that were to blame are being fixed. "The problem is if they miss this quarter, it's a sign of some major problems," he said. "With only a few weeks left in the quarter, they should have had it booked solid by now." Analysts expect the firm will earn 16cents a share. Duncan Stewart, a partner with Tera Capital Corp., said the market reacted so strongly because Silverstein is well respected and has been solidly behind Newbridge in the past. But Patrick Houghton, who follows Newbridge for Sutro & Co., said the selling was overdone. "My indication the last time I talked to them is they're still doing well even though they don't have the quarter in the bag yet," he said. Houghton is recommending clients buy the stock while it's down.