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

To: Doug who wrote (10741)	4/9/1999 12:17:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Doug, NTL won a head to head competition against Lucent for 1/2 of Bell's Capital budget. LU has more than double the valuation measures that the market has awarded NTL. the issue isn't the size of this sale only but rather the market's view of NTL's potential after a massive score against the leader. NTL is likely to be awarded a higher multiple going forward. FWIW, Ian.

To: Doug who wrote (10741)	4/9/1999 12:21:00 PM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

I think the last part of the story says a lot about where Newbridge is going. <Newbridge might hold an edge in this future battle, at least in financial terms, because most phone companies are gradually replacing their circuit switches. Many of the latter happen to built by Nortel and Lucent, which will naturally face a decline in related service and upgrade revenue. These giants could easily make up for the shortfall by convincing major customers to upgrade to their new data technology, but the transition could prove awkward. Newbridge, which makes data switches, doesn't face this issue.> From a Nortel prospective the deal is more of a strategic win with potential for future contracts that LU had been expected to win. Regards Glenn