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

To: Doug who wrote (4977)	6/5/1998 11:59:00 AM
From: j g cordes	Read Replies (1) \| Respond to of 18016

Doug.. there's never an absolute relationship between stock price and earnings growth. More often its the perception of market leadership and business potential that's consistently realized. LU for example sports a very high PE of 225, CSCO about 80 and ASND about 93. NN is well below that (forward pe if you want to be picky) because it failed market perception and business potential. It is exactly because, as you worry, the "The entire Communication Industry is now focused toward the high end of the spectrum.." that I feel NN will do better. If I may compare NN's public perception to that of a gold prospector who kept shouting that he'd found the mother load in Alaska... but never quite came up with the goods, thus his backers withdrew some support. Then another and another prospector finds ATM gold and our original prospector suddenly finds himself flush with new opportunity. This isn't a guarantee, but having competition in your field is the greatest compliment of your original insights and motives... it means the market wants to buy. I expect you'll start seeing perception change.. with upgrades born of competitors interest making NN's products all the more visible.

To: Doug who wrote (4977)	6/5/1998 12:48:00 PM
From: micromike	Read Replies (1) \| Respond to of 18016

To compound the problem, the growth in Sales outside N.America and Europe is slowing down. All this translates into a squeeze on margins caused by very stiff competition. Well my understanding is that Europe is deregulating the phone industry. If they happen to follow in the same direction the US went when they deregulated then I would think the equipment demand will be booming so were is this slow down coming from? Who is CSCO partner in Europe with? If they don't have one then my guess is the best technology and a strong partner over there will win the majority of contracts and presently NNC has zee best in both areas. Companies are realizing that Quality of service is important and NNC is way ahead of the rest in this area. Since I last checked AT&T had a terrible outage. What product was at fault? NNC nope! CSCO. JMHO Mike

To: Doug who wrote (4977)	6/5/1998 1:42:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

Doug, I am having a very hard time following you, on" the slowing down of the communications industry ".With the Internet explosion and deregulation and even assuming bad times ahead,the first things in a store is a phone and a computer and they are the last to go, in a firesale. Communication flow is increasing exponentially, non stop. In jan97 Wall Street Jour had a whole section on communications. Their editorial summarized the out look in one word: Bandwidth. This is what NN is offering.We just have to wait for everybody else to get up to speed; they are learning, TA