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

To: Serge Collins who wrote (11753)	6/3/1999 5:52:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

Seems nobody wants to be associated with Newbridge these days. The company is being treated by people as though it were a leper. Come on, Serge. Stick to the facts, as you so rightly cautioned me yesterday. And while we're on the subject of facts, let's review a few. 1) Tundra went public and is no longer an affiliate. Since NN kicked them out the door, it's pretty clear who wanted to be disaffiliated. 2) As for who likes NN, 26% of the worlds' WAN switching customers apparently do: Newbridge continues to lead the overall asynchronous transfer mode (ATM) wide area network (WAN) switching market. In its recently published 1999 ATM WAN Switch Market Analysis report, the Yankee Group estimates Newbridge captured 26 percent of the $1.5 billion ATM WAN switching market in 1998. The research findings also project significant growth for ATM WAN switches over the next five years, with the overall market experiencing a compound annual growth rate of 36 percent, resulting in the market reaching approximately $7 billion by 2003. Within this market, core switches and service switches are expected to experience compound annual growth rates of 52 percent and 34 percent respectively. 3) Among those who like the company are: SBC, BT, DT, FT, BEL (no. 2 this quarter), AT&T, Energis, G1, WinStar, Frontier, Williams (new alternate carriers), and a long list of others, including China PTT, Korea Telecom, and Bell Canada. 4) Two of NN's top customers are SBC and Bell Atlantic, the former is merging with Ameritech, and the latter with GTE, bringing a wider customer base than they currently have. The only RBOCs they won't have are USWest and Bell South. 5) Don't forget Siemens who gets close to 50% of their data networking products from NN. 6) And Fidelity. Since they now own over 10%, it's clear they like the company, too. You're welcome to worry about Tundra not affiliating with Newbridge, but as long as British Telecom and AT&T and France Telecom and Deutsche Telecom and Bell Atlantic and Global One and Energis and all the others like them, I'll not worry. A good part of being a successful investor comes from taking a position before the herds. It takes a lot of work doing the research, a lot of patience waiting for the Street to catch up, and a lot of faith withstanding the volatility caused by outside forces. No one said it would be easy. Pat

To: Serge Collins who wrote (11753)	6/3/1999 11:02:00 PM
From: Doug	Read Replies (3) \| Respond to of 18016

Serge: The trouble with NN and many of its well wishers is that they fail to realize that they are now playing in the +$5b league and that is a completely different Ball game from the $1b league. NN's strategy appears to be based on tackling one issue at a time generally after the issue become a crisis. This is a typical strategy for smaller ($1b) Companies who are less reluctant to accept the risk of solving multi variate problems that arise due to a change in Objectives. Mgmt in such cases either lack the guts or do not possess the required skills. This is not the Big league style. The big league players are very focused on the Objectives as a whole. Those CEO's expect and demand massive re-engineering of the Corporation when Objectives are required to be met. They are very comfortable with the multi variate approach as they have built up expertise during their climb to the top. Near perfect examples of this in recent times would be Eastman Kodak, AT&T and EDS. Listening to the CC of NN and EK or T, you could spot the difference in club status. NN needed an infusion of Big league talent at the Managerial & Supervisory level. Their Sales growth in the USA continues to be poor. They changed their head for U.S sales last year but that has not helped. We still have the problem but who cares.? There are many more Cobwebs. To me it makes better sense to clean out the house periodically once and for all. The big league players do this regularly. On the other hand, many on this thread seem to enjoy the gamble NN provides each Q .