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

To: matt gray who wrote (6057)	8/21/1998 8:33:00 AM
From: MD Bryant	Read Replies (1) \| Respond to of 18016

I have to agree with Matt. A weak Canadian dollar may not do much for commodities traders or importers, but for exporters and investors it is an advantage. That said, however, keep in mind the Canadian $ is weak to the US$, but not to other global currencies. SO the advantage is on US Soil. The US currency is strong globally, and this will hurt US Based companies that need to be competetive outside their own turf. How does a low Canadian $ help you as an investor? Well lets say you bought NN on the US market when the C$ was at US .70. If you sold NN now (share price irrelevant in this example), since the C$ is at about .65 US, you would be returned more C$'s for your sale.

To: matt gray who wrote (6057)	8/21/1998 10:03:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Matt, Your logic, IMO, is exactly right as long as the time span considered is more than a couple picoseconds. I was suggesting that there may be a difference between the business done by NN and its stock price (for a while anyway). Some traders may be more concerned about the impact of a falling Canadian $ on their stock's value than on the improved competitive position of the company involved. Certainly, having costs in Canadian $ while selling in US $ will be very nice for balance sheets. In the analyst world where Tom Kurlak is able to predict what was in last week's newspaper, this strength of NN may have escaped them. ...especially those who whine that NN's recent orders are already included in what they've been told by the company. This is why Analysts get paid the big bucks! Give me a break. FWIW, Ian.