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

To: Mighty Mizzou who wrote (11180)	5/5/1999 9:33:00 PM
From: S. Peterkin	Read Replies (1) \| Respond to of 18016

Analysts' rundown as posted on Raging Bull NN thread: ragingbull.com Personally, I came here for a long term hold. That's what the projected growth is all about (imvho). That said I do hope that the company learned that while it may not have to hit the earnings bullseye - it should definitely find the target in the coming future. Have enjoyed reading everyone's posts. Never thought the company was without problems. As a shareholder all I can hope is that the problems and the business growth are attacked equally. Regards Scott

To: Mighty Mizzou who wrote (11180)	5/6/1999 1:48:00 AM
From: pat mudge	Read Replies (3) \| Respond to of 18016

Mighty -- I think you'll be surprised at how broad NN's product line actually is. Study their products on their website and be sure to include the press releases on the TeraBridge joint venture. You're not the only one wondering about take-out threats now that the stock has fallen. From tomorrow's Financial Times: <<< NEWBRIDGE: Bid talk revives as shares plunge By Edward Alden in Toronto Shares in Newbridge Networks, the Canadian telecommunications equipment manufacturer, plunged 25 per cent early yesterday following the company's fifth profits warning in the last eight quarters. The stock dropped C$12.70 to C$40.90 in early trading on the Toronto Stock Exchange and fell US$8¾ to US$28 1/16 on the New York Stock Exchange. The announcement, which came despite continued strong sales, further damages Newbridge's credibility and increases the likelihood the company could become a takeover target, analysts said yesterday. With the rapid consolidation in the telecoms equipment and data networking businesses, Newbridge is seen as one of the few desirable acquisition targets left in North America, particularly for European manufacturers. The company is facing serious problems with its supply management, exacerbated by rapid sales growth and a pattern in which the bulk of orders are backloaded at the end of each quarter. But David Beck, analyst with TD Securities, said the continued problems could actually make the company more attractive to buyers. An outsider could come in and clean up the supply chain difficulties, and yesterday's share collapse made the price much more attractive, he said. The main obstacle to any potential buyer is Newbridge's strategic alliance with Siemens, the German telecoms equipment maker which is Newbridge's largest customer. Siemens would likely attempt to top any bid for Newbridge, creating in effect a poison pill against takeover, said one analyst. Newbridge warned late Tuesday that operating earnings for the fourth quarter ended May 2 would be 12-14 US cents, compared with analysts' forecasts of 21 cents. Alan Lutz, president and chief operating officer, said the shortfall was primarily due to the company's inability to process the huge number of orders made by customers late in the quarter. Two-thirds of sales occurred in the last month of the quarter, and Newbridge failed to fill US$115m in orders before the quarter ended. Revenue for the quarter was US$460m. >>>>>