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

To: gbh who wrote (13687)	10/17/1999 10:54:00 AM
From: gbh	Read Replies (1) \| Respond to of 18016

None of these issues exist with big three equipment suppliers. I should correct myself here. The big three I referred to were obviously CSCO, LU and NT. These balance sheet issues, as well as, some other issues concerning their continuing use of "reserves" from the T spinoff four years ago, are precisely what has been weighing on LU stock lately. Gary

To: gbh who wrote (13687)	10/18/1999 9:07:00 AM
From: Serge Collins	Read Replies (1) \| Respond to of 18016

Is there some funny accounting going on at Newbridge? After reading your post, I decided to check Newbridge's balance sheet and compare it to that of three other companies in the sector: Cisco, 3Com and Cabletron. It's clear that Newbridge's AR and inventories are much higher than those three companies. Furthermore, Newbridge's AR were higher than Total Revenues and had a substantial jump in the quarter. This leads one to wonder why ARs and inventories are so high on a relative basis, why they both increased so dramatically in the quarter and whether or not there is something to be concerned about. Could Al Lutz have taken a page from another Al's operating manual? That other Al would be Al Dunlap of Sunbeam fame. I recall Dunlap boosting earnings at Sunbeam by shipping product to warehouses and giving the appearance of good revenues and earnings. Eventually the game was exposed and we all know the rest of the story.