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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Iris Shih who wrote (18587)	11/29/1998 10:54:00 PM
From: Clint E.	Read Replies (1) \| Respond to of 70980

Hello Iris. Regarding NN: NN is a leader in ATM WAN. They draw ~50% of their sales from ATM WAN. They own 21% market share and compete against CSCO(25%), ASND(18%), NT(16%), and others like FORE, XYLN.....This is a growing market(~30% next year vs. ~50% this year) in which ASND has been gaining ground recently. NN is known to compete comparably in cost/port but where it really shines is tightly integrated network management software, at least according to one product eval. article that I read, dated March 98. The other ~50% of their revenue comes from voice-based TDM products. In the US where NN does 50% of their business, this market is shrinking due to the growth of the Internet and data networking and being replaced with ATM. They should be able to squeeze one more in-line or slightly better than expected quarter due to cost cutting and seasonally strong quarter but beyond that I am concerned about NN's top line growth, especially in the US. I am neutral on NN long-term. Short-term trend is up since the company is now viewed as a turnaround story so play it as long as it wants to go up. I cannot see it pass ~38 in the next few months. It should be a good short then since I don't trust this company, long-term. Clint