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

To: Trader Bob who wrote (3944)	3/31/1998 9:17:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Trader Bob, Didn't see anything in Today's web version of the globe but on the 14th, the Globe's coverage suggested one would do better by ignoring analysts and their recommendations. ... The Street's coverage of Newbridge Networks Corp. over the past year illustrates how wrong so much high-priced talent can be. Newbridge, of Kanata, Ont. -- perhaps Canada's most widely followed stock -- saw its shares soar from $40 (Canadian) a year ago to $92.35 in October. In early February, it sunk to a 52-week low of $27.50. How many analysts warned clients to bail out before $11.3-billion was erased from the company's market capitalization? Almost none. According to summaries carried by Bloomberg News, only three out of 80 reports on Newbridge ranked the stock a "hold" as it soared to its fleeting peak in October. On the slide down to $27.50, just about one-third of the reports rated the stock a "hold." It was only in February, after Newbridge's share price crashed, that a majority of analysts turned bearish. Some brokerage executives believe institutional investors should shoulder some of the blame for the declining reliability of stock research. Ever since commission rates on large stock trades were deregulated in 1983, profits on stock trades have become so razor-thin that it is no longer possible to cover research costs from institutional transactions. "Most of the institutions are cheap. They don't want to pay for what they are getting . . . the quality of research from the brokerage side has tended to decline on a longer-term secular basis because of the fact that the institutions have been squeezing the brokers," said Tom Caldwell, president of Caldwell Securities Inc. of Toronto. ...

To: Trader Bob who wrote (3944)	3/31/1998 9:23:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 18016

"Newbridge stock rising but analysts negative, consensus recommendation a "hold" on fears company isn't out of the woods" When I read "analysts asked not to be identified" I ignore the comments. How about "Doctor has diagnosed the patient, condition is terminal, but doctor has asked not to identified". Give me a break. In fact I would go so far as to say if you are in the industry and make a comment or statement you should be required to put your name to it, or keep your mouth shut.