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

To: gbh who wrote (13714)	10/18/1999 7:19:00 PM
From: Serge Collins	Read Replies (2) \| Respond to of 18016

gbh: The more you post about accounting trickery, the more it seems to apply to Newbridge. Speaking of the impact that soaring receivables and inventories can have on Cash Flow, check Newbridge's CF for the latest quarter -- it was negative. By the way, if the share price of Newbridge were to trade at an average price of around $20 for the 10-day period that will be used for valuing the exchange ratio, they would have to issue 50% more shares to bring the exchange value up to $30 of Newbridge stock for each Stanford stock. By the way, this does not include the $3.75 in stock they will have to pay for the CVR. That would mean issuing over 20 million shares of Newbridge to complete the transaction. Newbridge filed an S-4 last week for 19.3 million shares. They better hope their stock rebounds or they could be faced with the embarrassment of having to file an additional registration. Either that or they could always walk away from the deal. Which would be more embarrassing and detrimental to the company -- filing again or walking away from the deal?