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

To: Brett Nelson who wrote (3919)	3/29/1998 12:30:00 PM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Thought the ci bit (german hi tech show) might stir the stock, now however looks like it will take a contract signing. (ATT NTT Cable and Wireless or a US Telco) In the march 28 financial post technology analyst Howard Lis of Griffths McBurney & Partners when the stock dropped to 28 can dollars issued a buy saying "I felt is was still a very good company with great prospects, albeit somewhat watered down". Part of his strategy is just to understand investor psychology in the technology sector. For instance Newbridge is owned by a lot of US fund managers, some of whom are influenced by market momentum. There's a lot of knee-jerk reaction, of a stock overshoots, a lot of fund managers just say "get me out, at any cost" With many tech companies you're dealing with waves of maturity of various product lines, you could have a very high growth product line and a declining cash cow product line and when you blend the two you get cloudy results. The challenge for me is to separate the two divisions and try to bring perspective, to figure out how to value those businesses individually, to figure out what the financial statements would look like and what the multiples would look like. He concluded that although management had been correct to issue a warning on future earnings, the difficulties were only short-term. Note he also talks about cognos inc. in the same vain. Regards to all Glenn. P.S. another interesting thing is as the volume has slowed so have the postings. Strange but true.