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

To: Glenn McDougall who wrote (14385)	11/7/1999 1:05:00 PM
From: WTSherman	Respond to of 18016

My understanding is Lutz was hired to take the company to the next level, that being said the only way for that to be done was to increase the company's sales in the U.S. and we all know that did not occur. Alot of folks on this thread don't seem to really get it. The problems with NN go back long before Lutz showed up. There's only one way to account for this and its TM. In the telecom market of today, NN just doesn't have the scale to compete with the big boys and they're too large and have too much legacy business to be valued as a shooting star, like many of the recent IPO's. The legacy at NN is that of general failure to deliver on potential, consistent failure to live up to the company's own expectations and a failure to even remotely optimize shareholder value. I have followed NN for quite a few years, been in and out made some money and lost some money...investing or holding on to an investment in NN(at this point) seems to require that you believe that they will be bought out. Otherwise, there is nothing that's very compelling about NN. Believing that they'll be bought out means that you have to believe that TM will let go. I don't... A last little note, on this thread there is sometimes an undercurrent of economic nationalism because NN is a Canadian company competing with giants in the US and Europe. These kinds of feelings are best left out of investment decisions, even when there are tax incentives to do otherwise. Rooting for the home team is fine, but, investing on that basis is stupid. There may not be much downside left for NN(for the next few months, at least), but, there doesn't seem to be much upside either. With little credibility left, they will need consistent, improving results for many consecutive quarters to really drive the price back into the 30's. FWIW, I found this on Redherring: redherring.com

To: Glenn McDougall who wrote (14385)	11/7/1999 3:07:00 PM
From: Doug	Respond to of 18016

Glen: During any AGM, the lingo is "Hyperbole". CEO's with lot of Circus time are superb at deflecting reality. The Monica legend is a great example. The real story about NN was not in AGM's or Company press releases or Company sponsored studies about Market share or "Cut and Paste" clips of which there was a deluge. The real story is in the 3 year Financial statements. The earnings growth were in a state of decline, margins were under pressure and revenue was not growing on a consistent basis even though the Industry was booming. This indicates one or more of 3 things. a: Lack of a realistic business plan either due to a lack of talent or Capital. b:Margins are above the Industry standards. c:Poor but stubborn Mgmt who are indifferent to their Employees or Investors. The financial statements were pointing to this way back since 1998. A turnaround in a Mid-cap Company is a slow proces and made much harder when your rivals have a bigger say on the standards applicable for the next generation Telcos. NN has now experimented with Acquisitions, Mgmt (COO's) and technology but come up short. I do not think that continuining these Experiments will increase Shareholders value beyond what it may get if the "FOR SALE" sign was hoisted today. It should be also noted that NN has now nearly 20%or more of new shareholders during the last week. Perhaps TM has decided instead to be the BENSON (CS's Owner) of the North.