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

To: gbh who wrote (14785)	11/19/1999 1:08:00 PM
From: Ian@SI	Respond to of 18016

Company (Exchange:Symbol) As of: 11/18/99 Close 52 Week Range 5 Year Range Shares Outst Market Value NEWBRIDGE NETWORKS CORP (NYSE:NN) 24.00 14.00 - 39.88 12.50 - 69.38 180.597 M 4341.024 M NN CSCO NT TLAB Trailing P/E 33.8 146.6 NE 62.2 Forward P/E 35.3 87.9 67.0 58.4 Price/Sales 3.42 21.57 5.09 14.60 Price/Book 4.08 24.83 9.84 17.04 Range of non-Accretive / Dilutive NN buyout prices Using: Trailing P/E $104.09 #VALUE! $44.17 Forward P/E $59.76 $45.55 $39.71 Price/Sales $151.37 $35.72 $102.46 Price/Book $146.06 $57.88 $100.24 ++++++++++++++++++++ So if we want a takeout, it looks like CSCO can afford to give us the best price: $60 to $150 without a dilutive affect depending upon the measure used. We're not too interested in Nortel. Anything over $36 is dilutive from a PSR perspective. And TLABs is right in the middle: $40 - $100. So expecting a takeout somewhere between $40 and $60 is not completely unrealistic. Especially if a few major ATM and LMDS deals get inked short term with some major players. I won't spend my capital gain before it's realized. FWIW, Ian.

To: gbh who wrote (14785)	11/19/1999 3:25:00 PM
From: Michael M	Read Replies (2) \| Respond to of 18016

If you are correct (and I don't think you are), NN management is dumber than rocks. Once it was clear the quarter would be missed, why in the world would they compromise future success and compound the disaster? I don't think so. I would expect the exact opposite to be true. Missing the Q by any amount is big trouble, so why not load expenses v. future profits? I believe savvy companies treat disasters in just this way -- I admit they don't have near as many disasters as NN :-) If NN results were even more dismal than reported, it makes me wonder even more about Lutz. I think the man should report to Burger King immediately and collect his Whopper Award. If you're serious about "well below 30" vs. your previous "below 30," I'll raise you another warm beer. Mike