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

To: Peppe who wrote (5071)	6/11/1998 12:55:00 AM
From: Thomas Scharf	Respond to of 18016

Peppe, The comparison is more than a little misleading. While NN and CSCO compete directly in ATM, CSCO's business is much broader. CSCO's strongest product line is it's routers. The router business has had years of explosive growth and has begun leveling off in the last couple years. Routers are also under intense profit margin pressures. NN's forte is in ATM backbone which is barely at the start of it's growth curve because of the impending melding of the worlds voice and data networks. With their business concentrated in ATM backbone, NN's growth rate should eventually exceed that of CSCO at least for a few years. For the record, I am long both NN and CSCO and believe that I can win with both. Today I consider CSCO to be a relatively conservative core holding among tech stocks while I look to NN to eventually generate higher returns over the next 5 years.