Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Doug who wrote (8214)	12/2/1998 7:22:00 PM
From: Chris Stovin	Read Replies (1) \| Respond to of 18016

Could have, if only, what if... tomorrow's another day... Wednesday December 2, 4:53 pm Eastern Time Newbridge down after early gains on Italian deal TORONTO, Dec 2 (Reuters) - Newbridge Networks Corp. (Toronto:NNC.TO - news) shares firmed on Wednesday before being pulled down by general market weakness, after news the telecom and networking firm had won a modest European contract and amid speculation it may soon unveil another, major deal. Newbridge was as high as C$47.40 on the Toronto Stock Exchange before dropping to C$46, down C$0.90 on the day, in early afternoon dealings. In New York, Newbridge (NYSE:NN - news) shares were off $0.63 to $30.13. The company, based in Kanata, Ontario, said it was awarded a C$100 million, five-year contract to supply a multi-service networking platform for an Italian group. The venture, called WIND, comprises energy distributor ENEL, Germany's Deutsche Telekom AG (quote from Yahoo! UK & Ireland: DTEG.F) and France Telecom . Todd Kapala, investment specialist at Priority Brokerage, noted that losses in Toronto's broader market had pushed Newbridge lower despite the good news. ''The market forces are probably the overwhelming factor, more than anything else.'' Analyst Gurinder Parhar at HSBC James Capel noted that some WIND members were part of a larger, worldwide group called Global One. Global One consists of Deutsche Telekom, France Telecom and U.S.-based Sprint Corp. (NYSE:FON - news) Global One is expected to award a large contract this week and rumors have put Newbridge in the middle of the deal. ''What the market is expecting is the Global One to sign off,'' Parhar said. ''I think everyone is really waiting for the big one.'' The WIND contract was simply ''icing on the cake,'' he said. Kapala noted that shareholders had boosted the stock simply because Newbridge piled this deal on top of a China Post contract last week. ''The contract is relatively small compared to the overall sales figure,'' he said. Newbridge posted revenues of C$1.6 billion for fiscal 1998, ended April 30. But Kapala added: ''it's just the fact that it's another contract, it's good news.'' ($1 = $1.54 Canadian)