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

To: Serge Collins who wrote (13723)	10/18/1999 7:45:00 PM
From: GerryL	Respond to of 18016

Newbridge can also pay for Stanford in cash

To: Serge Collins who wrote (13723)	10/18/1999 9:05:00 PM
From: gbh	Read Replies (1) \| Respond to of 18016

Serge, these posts aren't meant to imply that NN (or LU) is guilty of accounting chicanery. They are just meant to show a possible cause for the gradual decline from the recent highs of the latest earnings release. I (as well as other longs) was pleased with the recent quarterly report. However, a little deeper look into the balance sheet shows these questionable items, that most definitely have an impact on the "quality" of those earnings. Large AR and high inventories can be good if the book to bill exceeded 1 (which I believe it did), provided they closed those "booked" deals as well as other new ones they may have felt were "in the bag". If they didn't, this quarter will not only be a little light, it could be very light. With the quarter close to closing now, its all but certain that the analysts have all made their calls to management for near term guidance. In light of this, the recent decline in the stock price is worrisome. I recently bought some near term protective puts just in case. Gary