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

To: Jules Shear who wrote (8852)	1/6/1999 8:16:00 AM
From: Glenn McDougall	Respond to of 18016

<< Does anyone have an opinion about CKEYF and their future relationship with NN? I don't know much about TM'S relationship with the company (besides large equity stake), their products, or future prospects. Given that NN continues to build war chest of cash-what does this mean for CKEYF?>> IMO nothing Newbridge will not take out CKEYF because that would limit their partnerships with the likes of Ascend and prospects like Nortel. <<However, from technical stock evaluation perspective-the stock looks way undervalued compared to peers. There are not many networking stocks today with growth rates like CKEYF and stock performance so misaligned. What am I missing? Thanks in advance for your help!! >> Their was lots of concern about the shares that were available to come to market at the end of December ~ 6 million. But given the low price and the market interest any "blocks" of shares being sold have move smartly and not hurt the stock price as some expected. John Selwyn CEO and Steve Spooner have done a superlative job with this issue. I am a CrossKeys shareholder and am looking to add to my position in the company as IMO it is undervalued by the market. If the market were efficient one would never be able to get deals, CrossKeys fits the "deal" criteria in my book. Regards Glenn

To: Jules Shear who wrote (8852)	1/8/1999 6:37:00 PM
From: Jules Shear	Read Replies (1) \| Respond to of 18016

On Friday, the 1) Nasdaq, S&P, Dow all end higher 2) CSCO, ASND end higher 3) Analyst issues comments reiterating buy on NN 4) Article in WSJ about Siemens stockpiling cash getting ready for potential acquisitions. 5) TA looked favorable for NN but..... NN down 7/16? Any insights?

To: Jules Shear who wrote (8852)	1/8/1999 7:14:00 PM
From: Jules Shear	Respond to of 18016

Anyone have thoughts about Ericsson or Nokia someday acquiring NN? Usually, NN buy-out speculation is focused on LU or Siemens-but if you look at what Ericsson and Nokia need to be competitive in their core infrastructure business, it seems that is what NN is best at. When you look at the situation- it looks pretty compelling... 1) Ericsson and Nokia have no expertise or real product offering to be handle data, multimedia, etc. 2) Both have tried to internally develop better data products-but will admit their switching platform and engineers are primarily "voice centric" 3) Both are pretty much betting the farm on Third Genertaion wireless (W-CDMA) which is going to require an ATM backbone. Third Generation is going to require all the wireless operators (first in Japan, than Europe, than US) to install new switches and base stations (i.e., big $$ for infrastructure provider) 4) Both companies have publicly stated (if I can find I will post) that they will go out and "acquire expertise" if necessary. 5) Both companies have relationship with NN. I belive Nokia has recently announced alliance with NN and Ericsson has recently purchase a small NN off-shoot. 6) Both companies are incredibily competitive against one another (basically they are the national companies of Sweden and Finland) 7) Financially, both companies have strong balance sheets and stocks (especially Nokia) I have been surprised since the NT/Bay announcement, LU now being able to more aggressively acquire companies, and the future of Nokia and Ericsson's wireless infrastructure business dependent on having high quality data/voice/multi-media switch ( that their competitors will have) that they have been so slow to act. Obviously, LU and CSCO will be the future two big players in the switching game- but it seems to survive in the new telecom world (not being a small niche player), that we would see more NT/Bay relationships. With the voice manufacturers (Ericsson, Nokia, Motorola, Alcatel, etc.) having to come together with the data manufacturers (NN, ASND, FORE, etc.) JMO-but I think there alot more experts on this thread who know more..and would be interested in your comments. Thanks in advance...