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

To: zbyslaw owczarczyk who wrote (12354)	7/22/1999 9:43:00 PM
From: New Economy	Read Replies (1) \| Respond to of 18016

Earnings date & estimate: techstocks.com

To: zbyslaw owczarczyk who wrote (12354)	7/23/1999 6:47:00 AM
From: Glenn McDougall	Respond to of 18016

Reportedly Flirting With AOL, Deutsche Telekom Still Needs a Telco Partner By Marc Young German Correspondent thestreet.com 7/22/99 6:00 PM ET When Deutsche Telekom (DT:NYSE ADR) raised around $12 billion for acquisitions in a June capital increase, many investors were asking themselves what the former German telephone monopolist was going to buy with all that cash. After reports this week that Telekom was hoping to take a minority stake in Internet giant America Online (AOL:NYSE), those very same investors may well be asking the simpler question: "What are they doing?" Earlier in the week, Germany's leading business daily Handelsblatt reported that DT Chairman Ron Sommer has for weeks been holding advanced talks with AOL CEO Steve Case over a possible deal. While the reports were subsequently denied and investors likely wouldn't have anything against the strengthening of Telekom's Internet business, shareholders might be forgiven for thinking the chairman should perhaps have other priorities. The denials didn't ruffle investors, who were perhaps preoccupied with Federal Reserve Chairman Alan Greenspan's congressional testimony. In early afternoon trading Thursday, Deutsche Telekom ADRs were down 3/16, or .5%, to 41 5/16 in New York, while AOL shares were off 4 9/16, or 4%, to 110 1/2. Sommer has gone silent on his strategic plans since his failed merger bid with Telecom Italia (TI:NYSE ADR) went horribly awry two months ago. That debacle left DT lacking a global partner for its telephony business and that's where, according to some, Sommer should be concentrating his efforts. Courting Case, they argue, should be lower on his to-do list. Besides the fact that a piece of AOL wouldn't come cheap -- a 10% stake alone would cost Telekom around $13 billion at current stock prices -- any possible deal would be a regulatory nightmare. Deutsche Telekom's Internet unit, T-Online, is Germany's market leader with 3.3 million customers, while AOL Deutschland is number two with 900,000. It would also quickly drain Telekom's $19 billion war chest. That cash is needed to give DT a shot at becoming a global player -- such as gaining a foothold in the lucrative U.S. market by buying long-distance carrier Sprint (FON:NYSE). Barring hooking up with a U.S. company, Telekom will at the very least need the money that would be spent on AOL for a partnership with another European telecom. Last week the rumors were that Sommer could be traveling to Madrid soon to sign off on a deal with Spain's Telefonica. Even though the Spaniards need a partner as much as DT does to keep up with the rest of the telecommunication Joneses, neither company seems particularly smitten with the other. Putting aside any such competition questions from either Berlin or Brussels, one possible option could be an alliance between AOL and T-Online, which could be financed by a floatation of DT's Internet operations. Another might be some sort of bartering involving Telekom's cable TV network. Loath to upgrade its cable for multimedia and telecommunications competitors, DT has already had discussions about a cable deal with publishing and media giant Bertelsmann, which coincidentally is the joint venture partner in AOL Europe. Cash deal with AOL or not, it's almost certain that Deutsche Telekom's war chest will probably be a lot lighter before year's end.

To: zbyslaw owczarczyk who wrote (12354)	7/23/1999 11:06:00 AM
From: pat mudge	Respond to of 18016

Dow Jones News Service via DowVision21 Jul 11:27 By Scott Adams TORONTO (Dow Jones)--Templeton Management Ltd. mutual fund managers still see some mileage in Canadian resource stocks and value in some Canadian small-cap stocks. George Morgan, portfolio manager of the C$539 million Templeton Canadian Stock Fund, and Peter Moeschter, one of two portfolio managers of the C$59 million Canadian Templeton Balanced Fund, said they bought resource stocks about six months ago, especially oil stocks, but some forest and mining stocks as well. . . . Templeton uses a value-based approach to investing, typically holding stocks for three to five years, though sometimes Templeton will sell a stock earlier if it reaches a predetermined target. As of June 30, the Templeton Canadian Stock Fund's biggest sectoral weighting was in energy stocks, at 16.80%, while the Templeton Balanced Fund's biggest weighting was also in energy stocks, at 11.59%. Moeschter said it has been difficult to find value in large-cap stocks, so he has been buying some small-caps, including printing company G.T.C. Transcontinental Group Ltd. (GRT.A) and automated manufacturing systems company ATS Automation Tooling Systems Inc. (T.ATA). Moeschter has also found power company Westcoast Energy Inc. (WE), steel company Dofasco Inc. (T.DFS) and aerospace company Canadian Marconi Co. (CMW) attractive because of their dividends. . . . Other current Templeton positions include copper company Rio Algom Ltd. (ROM), heavy equipment company Finning International Inc. (T.FTT) and Alliance Forest Products Inc. (PFA), Moeschter said. Morgan has been "nibbling" at a couple of Canadian gold stocks recently, but he declined to identify them. Gold stocks don't usually qualify as value investments, Morgan said, but they are beginning to look attractive. Templeton has been underweight in Canadian banks stocks the past couple of years, but it was a buyer in the recent initial public offering of Clarica Life Insurance Co. (T.CLI). Templeton has also stayed on the sidelines with technology stocks because it is difficult to find value in them, though Morgan said Templeton does own stakes in networking company Newbridge Networks Corp.(NN) and BCE Mobile Communications Inc. (BCX). -Scott Adams; 416-306-2026; scott.adams@dowjones.com