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

To: Robert who wrote (11700)	6/2/1999 10:49:00 AM
From: Ian@SI	Respond to of 18016

r's, What do you find amusing. Since the earnings warning, NN's price went from 37 to 26. Do you have some perverse form of logic that causes you to feel that meeting the revised target and confirming the prospects should cause it to lose further market cap. No matter how you slice it, year after year, NN has grown its business profitably. That's a glass half full and filling up.

To: Robert who wrote (11700)	6/2/1999 3:52:00 PM
From: Doug	Respond to of 18016

Robert: For that, you may have to keep your fingers crossed for a long long time. I understand NN is now actively going to manage the earnings to reduce volatility. Usually, this entails weekly adjustment of the Master Production Schedule using current data. Since the MPS is based on a high probability heuristic forecast , this earnings management may result in higher Inventory carrying costs. Operating margins could be affected depending on the maximum disparity between the 2 models at any one time. I think they can still fine tune their Testing and Tuning and Out sourcing policies to improve margins. They have saved those issues for another day.