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

To: Peppe who wrote (4938)	6/4/1998 2:34:00 PM
From: Brett Nelson	Read Replies (1) \| Respond to of 18016

<<If he suggested that NN is over-valued, his target price would be $21. Looks to me like this guy knows what he's talking about. Anyone else think NN will hit $21 US ? >> There is a school of contrary trading which buys and sells false breakouts based on new 20 day highs and lows. Yesterday, NN made a new 20 day low. For a buy signal, NN must close above the previous 20 day low, which was $25 7/16 on 5/27. If NN fails to close above this level, then this school of trading would view the low as a legitimate breakout to the downside. In that case, the next level of visible technical support is $20, which is perhaps how our friend came up with his target price. In any event, my qualm with MacLellan is that he continually bashes NN for being too reliant on ATM. I understand the virtues of having a broad product line to sell deeper into existing accounts, but since when is a focused product strategy a competitive impediment? DELL doesn't sell printers and ZIP drives yet analysts don't fault them for being overly reliant on PC sales. Investors are capable of diversifying their own portfolios; that is the basis of the Capital Asset Pricing Model. I don't necessarily need NN to have its hands in every aspect of the telcom equipment industry.