USRX Message Board - Msg: 944932

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Technology Stocks : USRX

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To: maven2010 who wrote (14830)	3/7/1997 10:31:00 AM
From: Thomas Dremel	of 18024

The market is discounting the merger between USRX/COMS and consequently USRX is trading a couple points below 1.75 * COMS. It seems with the breakup fee and the fact this is a friendly merger where both sides want the deal for the long term synergies - it seems a good time to buy the USRX shares. I think the deal will happen - so there is a couple of points to pick up on USRX shares. I also think the hype about the Rockwell modem is overblown, since all the major on-line service providers are desperate for faster speed and are now test piloting USRX's 2x modem. Given the thrashing both USRX and COMS have taken recently, it seems like there is good value here. The negatives to buying USRX right now I think are two things - 1)COMS has already announced bad earnings for the upcoming quarter and is fighting a price war with INTC (many times it takes more than 1 quarter to turn around) and 2)USRX is looked at by some market players as loosing their tech edge over the other modem makers and might be turning into a commodity type product maker (look what happened to Creative Tech and their sound cards for instance). I know I wouldn't want to bet the farm on USRX (I like CSCO over COMS), but it looks like a good reward given the lower prices. Tom D

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