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

To: Peter Wong who wrote (12494)	8/1/1999 7:39:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

remember a few years ago when Service Corp of the US offered Loewen shareholders the equivalent of $45 Can. per share and Ray Loewen and the board of directors rejected it. Loewen is now at $1.70. And I imagine a few years ago someone offered Cisco $45 a share, too --- pre-split. Both examples are equally valid. As for the company's value, I'd love to see someone run some numbers --- anyone wishing for a buyout, that is. Throwing out $45 without saying why is meaningless. NN's communications office is quite responsive and I'm sure if someone really wants to put a value on the company --- and back their effort with solid research --- they'll get honest responses. Start with the value of each contract both now and going forward. Then calculate the value of each affiliate both for its technology and what it might command as a spinoff. And finally put a value on NN's patents and any joint developments in place. To make the numbers meaningful, you'll need to calculate market growth and NN's share in each segment. Then factor in a premium for being the only IP/ATM game left in town. My money's on NN staying independent with new relationships giving it added stature. Right now TM has it pretty good --- freedom to build his company as a roving ambassador while his president and COO, after 14 months restoring the business, takes care of the day to day. I can't think of a single reason he'd want to be taken out. TM at Ericsson would be like a bull in a china shop. Pat