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

To: Tunica Albuginea who wrote (12367)	7/24/1999 11:20:00 AM
From: New Economy	Respond to of 18016

Where could NN go if it potentially exceeds estimates? A comparative anlysis with NT (Nortel Networks) slide of Sept. 1998 due to a Press Conference in NY regarding Latin American concerns. (2 Parts) 1. Analyst? I am not sure if I care what anlayst disclose to the public any more with respect to buy or hold, strong buy, mkt out perform and other ratings they slap on companies...too many hidden motives. What we should do is perhaps consider reports written by analyst who have their "CFA" (Chartered Financial Analyst designation). CFA's must adhere to AIMR strict rules of conduct otherwise risk professional discipline.... aimr.com * I am currently enrolled in this program, it is made up of 3 levels I just wrote level 2. With NN, analyst estimates are a little conservative considering the earnings warning experienced last quarter. Think about it if you were an analyst would you not be a little carefull in your estimate? A year ago the EPS was .14 and analyst are estimating .15 this quarter. Sources of information that discussed analyst: "Business Week" had an article last year regarding the pressure analyst are under to satisfy clients ie. the corporations their firm under write and the rating they give. Canadian Business had a reall nice article which rated analyst here in Canada. 2. NT Nortel Networks gets shot down hard in Sept. 1998 due to anlayst downgrading the company. Please click on the chart below and look at how badly the market killed NT: techstocks.com When their next quarterly earnings came out I was on-line. 10:00 Earnings released WOW surpassed analyst estimates. 10:02 I place a market order to buy NN first time in my life I placed a mkt. order. 10:15 The stock climbs 10 % I get filled + 3 - 5 %. The bottom line is that the mkt. will over do things both positively and negatively. intelligentspeculator.com In our quest to be intelligent speculators we have observed that the strategy of buy and hold forever requires some qualifications. From every outlet investors have been admonished to chant the mantra of never sell and never to attempt to time the market. We are to only buy using dollar cost averaging regardless of market conditions and faithfully ride the market up and down regardless of trend because, in the long run, the market always goes up. Yet we repeatedly witness alternating episodes of buying frenzies and selling panics on a worldwide scale. Who is doing all of this trading? If it is not the new breed of educated individual investor who never sells, then who is? From our experience the fund managers are the big traders. Contrary to what they tell their clients, managers try to time the market all the time in an effort to beat each other. A number of the top technical analysis advisories routinely charge over US$100,000 per year per client for advice. The public is discouraged from attempting this feat at home, mainly because all the fund switching makes a fund more difficult to handle for the managers. * aimr.com Because ethics is the cornerstone of its service to the investment industry, AIMR members answer to a higher standard. The AIMR Code of Ethics and Standards of Professional Conduct make up AIMR's Professional Conduct Program, which promotes integrity within the investment community. To associate themselves with AIMR, members must adhere to strict ethical guidelines. AIMR encourages members and nonmembers alike to report questionable or unethical business practices by its members through the Online Complaint Center