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

To: Robert Lumb who wrote (13686)	10/15/1999 10:28:00 PM
From: gbh	Read Replies (2) \| Respond to of 18016

If NN meets expectations this quarter I'm sure the stock price will rebound significantly. If they do not meet expectations things could get ugly. The ugly part is easy. The real question is how far NN rebounds if earnings just "meet"? Last quarter they exceeded, and proceeded to fall about 25%. Of course, there were some balance sheet issues with inventories, AR, and DSOs. Analysts generally get suspicious when these things grow faster than revenues. Too much uncertainty when these things get out of whack. I believe they would do better to just "meet" earnings, and present a pristine balance sheet, rather than trying to beat by a few pennies, by maybe shipping product into warehouses on perhaps flimsy agreements with customers, which these items seem to indicate. I mean geez, AR exceeded revenue. None of these issues exist with big three equipment suppliers. Gary

To: Robert Lumb who wrote (13686)	10/16/1999 12:19:00 AM
From: pat mudge	Read Replies (3) \| Respond to of 18016

If NN meets expectations this quarter I'm sure the stock price will rebound significantly. If they do not meet expectations things could get ugly. Any thoughts on the matter? Does a bear. . . ? Yes, I have thoughts on the matter. In fact I have thoughts on little else. First of all, Alan et cie know what they have to do. They have to meet expectations and if possible beat. Nothing can prevent it. Not hurricanes, earthquakes, floods. Not defunct banks, deposed dictators, deranged directors. Nothing. Until they bring in a solid quarter, with strong backlog and healthy book-to-bill, everything else is whistling in the wind. The press releases that came out at the AGM affected the stock for about a day. Not really enough to justify being released. A fact that may have influenced the silence around Telecom '99. There's also some nervousness regarding the Stanford Telecom deal and while I've been assured it'll close even if they have to use cash instead of shares, those who want to stir the flames of fear will continue their negative whispers as long as it serves their purpose. The near-total press blackout and nervousness surrounding the acquisition are both extremely frustrating. Behind the scenes I've heard about impressive LMDS contracts, huge interest from carriers re: 3dSL, and the successful integration of hardware and software on the 50-gig project. (With delivery on schedule.) And yet no one knows and if they did, probably wouldn't care. It's as though Kiri te Kenawa's singing in a padded cell. Pat