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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: goldie who wrote (20533)	4/16/1999 3:23:00 PM
From: Clint E.	Respond to of 68116

Goldie, I haven't kept up with NN recently so Harry may be a better judge of recent developments with NN. Clint

To: goldie who wrote (20533)	4/20/1999 3:51:00 AM
From: Johnny Canuck	Respond to of 68116

Goldie, Sorry I am not as up to date on the fundamentals as I used to be on NN as I have missed most of the conference call for the last 2 Q's. I still have some fundamental questions about the company. They still have not won a significant RBOC contract for ATM. They do well international, but the long payment schedules result in a high accounts receivable when compared to ASND. Product mix is still a issue for them and leads to volatile Q to Q comparisons. The last 2 Q's results were not great. DSO's are still high due to the large proportion of international business. The Q's are still back end loaded so they don't know if they make the number to the very last minute. That leads to nasty and pleasant surprises for the analysts. Unfortunatley, they leads to a lower stock price multiple too as a result of the unpredictability. From a technical basis it looks fine, but I would wait for a clean break out of 37/38 resistance level with volume. I don't really expect a blow out Q from NN. They are still in transition. Most of the current move appears to be over speculation of a take over. They usually report late in the earnings season so it is too early for an earning related move. Good Luck, Harry