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

To: James Calladine who wrote (17206)	2/18/2000 10:35:00 AM
From: Peppe	Read Replies (2) \| Respond to of 18016

James, Don't discount the fact that the Dow is down 108. Greenspan hath spoken... peppe

To: James Calladine who wrote (17206)	2/18/2000 10:52:00 AM
From: Tunica Albuginea	Respond to of 18016

Calladine,Re: MARKET ACTION: I don't see anything unusual here: -First off we all know most people have no clue about ATMs the core the edge etc etc. -Most have no clue what a great combination NN + ALA will be. -Naz + Dow are down on double witching Fri. Normal for eveything to go down. -Mon. is a holiday so many want to lighten up for long weekend. -ALA down to 47 would go along with that. -Actually considering it is down only 6% that's good: many companies go down more than that on an acquisition. -ALA does have a gap to fill from 42 so that's OK too. -There will obviously be no dilution for ALA because of NN's strong product line. Unless of course the takeover is for more than 1:1 share. Such as 1 NN : 1 1/2 ALA which is possible. Meanwhile I think NN holds the cards . A combined ALA + NN will be a tremendous threat to LU, NT and CSCO: -Look for all the RBOC ATM business to go to them. -Look for increasing CLEC business to go to them. -Look for ALL the overseas business to to them. Both CSCO and NT have a richly valued stock. I think if there is an ALA buyout offer next week, ( and I expect there will be one ), a good strategy will be to hold NN in case there is a counter offer !!! Remember what happened to the PFE, AHP bidding war for WLA? Or the USWest, GBLX / QWST /USWest deal? Further Technical Analysis tells me that " the smart money is moving in ", ie loads of stock greater than 10K, 20K, 30K, 40K are all in the buy. The sells are the little 1K or 100 - 200 shares. NN is holding it's breakout support price of 32 very well. Options expiration price is ~ 35. I think we will close at +/- 35. All IMHO TA TA Message #17206 from James Calladine at Feb 18 2000 10:28AM MARKET ACTION: Looks to me that the market is saying: -- Sell ALA because of dilution possibility -- take NN down in lock step as a result because of presumed valuation of NN Other ideas? Best wishes, Jim