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

To: zbyslaw owczarczyk who wrote (11372)	5/10/1999 12:08:00 PM
From: Tunica Albuginea	Read Replies (2) \| Respond to of 18016

zbyslaw owczarczyk, believe it or not I agree with you, <g>. Let us see what we have here. First of all I think that the dumping of the Stratacom switch dealt a deathblow to CSCO's entry into the International Telco biz. I don't care how many 2X4 upstarts come out with 2X4 switches (and maybe CSCO will buy a few of those for a few mill). However when you start moving bill of Terabit data around the globe you need a Telco-Carrier type of switch, (sort of like a heavy-duty battery, <G>), impervious to crashes. CSCO is not going to develop that overnight. So they either buy NN or they are out of it. Right now the RBOCs are scrambling to get their Internet gear out on the market, with AOL for example, before AT&T eats their breakfast with ATHM, UMG cable Cos. (I have cable and it is fantastic but that is a separate issue). The RBOCs no longer will be able to buy Cisco's assuaging remarks " guys just wait till the year 2001, 2002, 2003 etc, we have a switch cooking ". They already have done that for the past 3 years and what do they have to show for it: brownouts and no web network; furthermore, they have a giant mamma gorilla called AT&T suddenly fall off the tree into their backyard and they are asking for help and relief. They want now and they want it big. The net is big. They will rapidly now wake up and realize that what NN has been telling them for the last 4 years is true: that CSCO is a computer networker and that what they need is a Telco networker, i.e., NN, somebody that understands the specs for a carrier type of switch. I think they will scramble to get it and NN will tell them how much to pay for it. In reading the various threads this AM I get this feeling: I think people are in a state of shock from CSCO's bombshell. It's like a bad disease: the very first reaction to a bad disease is denial: " I don't have it ". We will now enter into the 2nd phase,the acceptance phase of it. Meanwhile the smart folks will begin accumulating NN as they have been doing for the last 4 trading sessions. Slowly though: We don't want to jump in it with both feet and raise the price. After the stock gets to ~45-50 and they have enough of it, then they will begin to recommend it. After my initial buy of NN I have decided to buy more but I will do that gradually and on pullbacks. I will see the intraday low and buy some more and average up. Let me answer in conclusion your point. ( I always take too long to get to the point, <g>): NN's value will take a while to develop. Now folk's eyes will turn to NN and realize the value in technological R&D that they have and price will appreciate exponentially. Meanwhile NN will sell the shovels to the RBOCs AND AT&T as they both go out looking for internet gold, TA