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

To: Glenn McDougall who wrote (9372)	2/5/1999 9:33:00 AM
From: Tunica Albuginea	Respond to of 18016

Glen, I feel positive about NN. I didn't sell at $37 in which I had a nice profit and i am prepared to hold all the way down to.......? ; I will buy more when stochastics turn. My take of the CC is positive . Here is why and my reasons: " Bad news, good news: older products stumble, but orders for newer switches soar " 1)Third-quarter revenues are expected to be $450 million -- up from $359 million in the same period a year earlier .: that's nice growth from before 2)Mr. Lutz said TDM sales were especially weak in Asia and Latin America, to be expected. Asia Latin America are in the dog house. You can't squeeze blood out of a stone 3)Newbridge's flagship product -- a high-speed switching device known as the 36170 -- recorded a 35-per-cent jump in sales from the second to third quarter. Customer orders for the same product, which is based on asynchronous transfer mode (ATM) technology, were up an even more dramatic 45 per cent. !!!!!! 4)Mr. Lutz is also applying the same outsourcing logic to developing Newbridge's next-generation ATM switch, a 50 gigabit-per-second device that can handle massive amounts of voice, video and data simultaneously. here comes NN's leading R&D for the future of the net technology. How many Gigabit switches are others developing?. 5)" said Mr.Lutz. "The reality is, we really do have to be in the 35- to 45-per-cent growth range, and that requires prudent risk-taking." Dat's what I call a nice growth rate 6)Newbridge wrapped up the third quarter with more than $900 million cash in the bank. This reserve was fattened by the sale of Newbridge's minority stakes late last year in Cambrian Systems Corp. and Vienna Systems Corp. Great! The cash stash keeps rising to pay for R&D and developments of new enterprises. Look at Perot systems go up last 3 days! . Indeed, when these one-time gains are included in Newbridge's final results for the quarter, it recorded a net profit of 46 cents U.S. a share. there you go NN,. And “ the piece de resistance” ''WE”RE HITTING THE COVER OFF THE BALL ON ATM,'' Lutz added. Go NN!!! TA

To: Glenn McDougall who wrote (9372)	2/5/1999 10:08:00 AM
From: Dennis R. Duke	Respond to of 18016

Why NN won't take the dive that ASND did in the fall of 1997 based on still posting a profit but missing estimate: 1) NN's financial systems are up to quick reporting. NN in 4 days after the quarter was able to report financial results. ASND began their implementation of the Oracle data based accounting system after the fall crash because it became apparent they did not have a handle on the numbers. This ability to report speaks well for NN's financial controls. 2) They reported the problem early. No one likes surprises, but they can deal with them if the Company is up front. They did not wait until the earnings release to get out the news. 3) They did not promise that the quarter was on track or better as Mory did at conference after conference. ASND surprised the street. NN's old line of business was known to be variable. 4) ASND did not have the ATM switch at the time they fell short. Therefore they did not have a "super product" that clearly was capable of being the forward growth. NN did a great job of showing that the "super product" is a live and growing very well. So into the teens in my opinion won't happen. If the writers of those comments are expecting a repeat of ASND's fall, I think the above is why that won't be the case. Will it give enough of a discount for me to take a 30% loss to return is the only question in my mind. Later, (-8 Dennis 8-)

To: Glenn McDougall who wrote (9372)	2/5/1999 11:16:00 AM
From: Doug	Read Replies (2) \| Respond to of 18016

Anyone: A year ago when the new COO took over, NN had stated revenue would grow double in 3 yrs. At the time I had stated that tying Income growth to revenue was a doubtful hypothesis.. The current and next Quarter now clearly show that was true. Whilst it is possible to increase revenue,increasing Income is quite another matter. The income for the next Q is now lowered to 22c. This means margins are under pressure.That pressure will only increase with time. I would like to know what is the price target, matching income target and time frame during 99. Although I had correctly hedged at the peak in Jan, I had not anticipated such a large slide of C$17 from the peak.