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

To: Serge Collins who wrote (9808)	2/23/1999 8:45:00 PM
From: Dennis R. Duke	Read Replies (1) \| Respond to of 18016

The advance/decline line is still negative for the overall market. Monday it was positive for the first time in weeks. Today it did not follow through. This market could turn against anything that isn't a household name, or has a hint of worry in it. The NASDAQ is being held up by about 20 names and this rally this week is not broad enough to keep a lot of good stocks a float with buyers. IMHO, NN is still in a recovery mode, and while a good long term hold, it could be choppy in here. My specific concern is margins and competitive pressures. If ATM orders were up 45%, ATM sales was what only 35%, margins were lower from prior periods, then does that mean competition is increasing and pressuring margins? That issue could be rised by our analyst feinds ;-). The analyst could also take to task the earnings being achieved from affiliate sales rather than operating margin improvement, and call it too early to tell if NN is recovering yet. I believe Merrill Lynch, who had released a report saying that NN had a good chance to beat the just released quarters numbers, might lower it opinion, or at least make some guarded comments about how they missed the call on earnings. I would be looking to see what if anything Joe Bellace at ML says, or writes. My thoughts, if you're currently an owner; HOLD. If you want to BUY, watch for a sign which way the wind is blowing and then decide for yourself. And if your money is gone from hanging out in other sectors, lurk where you had success before, like I am. Best to you all!!! Later, (-8 Dennis 8-)