Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (30877)	1/18/1998 2:16:00 PM
From: Glenn D. Rudolph	Respond to of 61433

Price: $30 Estimates (Apr) 1997A 1998E 1999E EPS: $1.07 $1.05-1.10 $1.50-1.60 P/E: 28.0x 27.9x 19.4x EPS Change (YoY): 0.5% 44.2% Consensus EPS: $1.06 $1.58 (First Call: 12-Jan-98) Q3 EPS (Jan): $0.27 $0.27 Cash Flow/Share: $2.05 $1.98 $3.38 Price/Cash Flow: 14.6x 15.2x 8.9x Dividend Rate: Nil Nil Nil Dividend Yield: Nil Nil Nil Opinion & Financial Data Investment Opinion: C-3-2-9 Mkt. Value / Shares Outstanding (mn): $5,490 / 183 Book Value/Share (Jul-97): $5.28 Price/Book Ratio: 5.7x LT Liability % of Capital: 1.5% Est. 5 Year EPS Growth: 25.0% Stock Data 52-Week Range: $69 3/8-$27 1/4 Symbol / Exchange: NN / NYSE Options: Pacific Institutional Ownership-Spectrum: 27.8% Brokers Covering (First Call): 16 ML Industry Weightings & Ratings** Strategy; Weighting Rel. to Mkt.: Income: Underweight (07-Mar-95) Growth: Overweight (07-Mar-95) Income & Growth: Overweight (07-Mar-95) Capital Appreciation: In Line (13-Jan-98) Market Analysis; Technical Rating: Below Average (29-Dec-97) Intermediate term opinion last changed on 04-Nov-97. The views expressed are those of the macro department and do not necessarily coincide with those of the Fundamental analyst. For full investment opinion definitions, see footnotes. Investment Highlights: <sum> Industry sources indicate that Newbridge management will reach a decision on the potential divestiture of the enterprise business by the end of the January 1998 quarter. <sum> Based on the strong relationship between Newbridge and 3Com (COMS; $32 11/16; C-2-2-9), we believe that 3Com will be involved in the transaction. <sum> Investor concerns will now focus on the TDM business, which derives 85% of revenues from international markets. Fundamental Highlights: <sum> Enterprise Networking revenues were about 10% of total sales in the October quarter, representing c$33 million from UB Networks and c$10 million from the VIVID product family. <sum> Time Division Multiplexer (TDM) sales were 44% of overall sales in the October quarter. Market research indicates that Newbridge's market share is 50%, about twice that of its closest competitor. Bulletin Canada Telecommunications/Equipment 14 January 1998 Joseph J. Bellace First Vice President Newbridge Networks Corp Potential Decision on Divestiture of Enterprise Business by End of Current Qtr. NEUTRAL Long Term ACCUMULATE Reason for Report: Recent Developments Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#10101468 Stock Performance