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

To: Steven Fischer who wrote (2881)	1/30/1998 4:34:00 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 18016

Canadian Financial Post Friday, January 30, 1998 Newbridge stock taken on roller-coaster ride By JILL VARDY Technology Reporter The Financial Post OTTAWA - Newbridge Networks Corp.'s stock brushed a 52-week low yesterday amid rumors of delays filling some contracts. The shares (NNC/TSE, NN/NYSE) whipsawed from a high of $41.65 to a low of $37.50 - below the 52-week low close - before ending the day off 20› at $40. The jump in early trading came from bargain hunting, but analyst Robert MacLellan of SBC Warburg Dillon Read Inc. knocked the stock back with a note warning of possible delays in shipping Newbridge's asynchronous transfer mode products. "We're beginning to get indications that shipments of the ATM products already under contract may be happening slower than expected and that there could be delays in getting new contracts consummated," MacLellan said. "Our concern is that while a number of analysts have reduced their earnings estimates for Newbridge, they didn't downgrade their recommendations on the stock. "If these indications of delays are true it could get ugly." A spokesman for Newbridge refused to comment on the stock market activity. MacLellan changed his recommendation on Newbridge to "reduce" from "hold" on Jan. 22 and cut his earnings forecast for the third quarter ending Jan. 31 to 23› a share from 26›. Newbridge is to report its third-quarter earnings Feb. 24.