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

To: Greg Wai who wrote (2302)	10/26/1997 12:09:00 AM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 18016

There can be no doubt that the situation in Hong Kong and China has had a profound effect on NN and many stocks. However this will be a short term problem. People like yourself who are looking for a re-entry point should realize that unless there is a US market meltdown it is here. Will there be a further downturn? Not without an interest rate rise right here in America. These opportunities are usually very short term in nature. I can't tell you when to buy at what price or how much. You make up your own mind. But I will tell you this about the supposed troubles in China. Take a look at some of Motorola's latest press releases. China is not insolvent. This is simply one of those excuses for the market to reduce PE's on overpriced stocks. Lets say NN makes $2 a share next year. What will the PE be then? What will the growth rate be? How much will investors be willing to pay for the stock? We already know some will pay $69 a share in the US. Do you doubt they will do it again? Not me. The market will probably rebound soon. Newbridge will too. I mean the people who waited on the bottom after Black Monday already missed it. Warning, past market rebounds are no guarantee of future rebounds. So who cares about sales in Asia. They will continue. Are they going to reduce prices for depressed economies? What depressed economies? Regards, Jeff