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

To: New Economy who wrote (12961)	8/24/1999 10:26:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 18016

NT only annoyed the analysts for 1 quarter in a row. NN already went up more than $1 today. Pat left out Alan's comments near the end of the conference call when he referenced that Ben Dummett's rumours were about to become reality. [my translation, not his exact words.] But Alan did reference Dummett. He did say the Board had already approved the transaction (when talking about the Juniper sale, he mentioned that proceeds from JNPR not required as the BOD had already approved the transaction using existing assets.). So my guess is that we see NorthChurch and Ironbridge come into the fold before the middle of September. With an industry beating IP strategy delivered as tangible products fully integrated with its ATM switch, I could see NN's stock moving bigtime. The other very encouraging comment was also from Alan. "LMDS is going to be much bigger than we thought." And I think they already thought it was going to be humongous. Ian.

To: New Economy who wrote (12961)	8/24/1999 11:01:00 PM
From: schlep	Read Replies (1) \| Respond to of 18016

SWAG- From release: 12% sequential Q2Q growth. Lets compound and extrapolate: WAN 12% per quartuer compounds to 57.3% annual growth. This growth is on 72% of their business. Multiplying out, this gives 41.25% growth on total dollars just from WAN portion. Let's assume that remaining 28% of the business combined with reduced operating costs will give 25% annual growth. So this provides another 7% growth of total dollars. Combine 41.25+7 = 48.25% annual growth. Assume $0.96 earnings estimate is accurate for 4/30/00, you then get next years EPS (4/30/01) of $1.42! Next, assume NN regains some credibility with the street and therefore some P/E expansion to better match their 48% growth rate (let's conservatively give it a 40-44 p/e which is less the 1/2 of CSCO's p/e) and you GET: Price TARGET: US$56-$62 Of course plenty of upside with an even higher p/e. cleaning my chin from the drool.... -schlep