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

To: Chris Stovin who wrote (5124)	6/12/1998 4:31:00 PM
From: Doug	Read Replies (2) \| Respond to of 18016

Chris: Price typos guaranty attention. It does work.! I have no hang ups in singing theme song ATM. My difficulty lies in correlating a $200m contract spread over 5 yrs and a revenue requirement of $1.9b/yr. I am sure there are some who might say " One small step from Energis is one big Leap for NN" Could they be right , I wonder.!

To: Chris Stovin who wrote (5124)	6/12/1998 11:50:00 PM
From: Doug	Read Replies (2) \| Respond to of 18016

Chris: If you are a client of RBC, you could ascertain what revenue and income projections were used by them to arrive at the projected valuations. I am quite keen to understand how NN plans to increase its revenue. They have 2 options. A further cash buy out of another allied Networking Company with strong cash flow and/or a revamp of their Sales strategy. There is no doubt that the Company antisipated the problem and had decided that the cash buy out of an Allied operation was the best option. This resulted in the purchase of U.B Networks. It was an expensive buy which did not generate the revenue expected. Based on this, the probability to increase Packet switching revenue by 30-40% is small. However,the chances of increasing revenue is greatly improved if they went in for another cash based acquistion. I hope others will join in helping to understand the buisness fundamentals.