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

To: Doug who wrote (6295)	8/31/1998 10:50:00 PM
From: mariner	Respond to of 18016

For what its worth: I rode NNC from 39 to 95 Cdn and got out in the high 70s on the way down (good luck I guess). I've continued to follow the company but haven't bought in yet. Tomorrow should be the day. Why? 1/ Mr. Lutz has brought a measure of discipline to NN that the company has never seen before. Earnings and revenue growth are the focus now and I am confident that they will continue to improve. Given the beat up price, the downside, even in a continuing down market is limited. 2/ NN technology is solid. No, they won't displace CSCO and will continue to lose their fair share of deals, but they will also win their share in an EXPANDING market. 3/ The market. Yes it could go lower. There are forces of deflation out there and things could get ugly. On the other hand, there is a lot of smart money available, shopping for long-term growth. If networking gear doesn't fit the bill then I don't know what does. Does anyone see the bottom falling out of the data-comms market? 4/ Bottom line: the medium to long-term upside is very attractive. The short term downside is limited by the pummeling NN has deservedly received earlier this year. Unless you're a short term trader this appears to be a good risk/reward scenario, and a very logical entry point. IMHO.