COMS & the Ghost of USRX w/ other STUFF Message Board

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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF

COMS 0.00150

-28.6%

Dec 11 9:30 AM EST

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To: WebDrone who wrote (15769)	6/1/1998 5:50:00 PM
From: Mohamed Eissa	of 22053

As far as I know, there hasn't been any trigger. I don't buy the Asia excuse. I think the problem is the following: The most difficult problem in Telecom nowadays appears to be the "last mile". Lucent/Nortel/Cisco, etc have been focusing on the backbone area and are just now targeting the last mile. xDSL, cable, etc have not taken off. This is the consumer space and is dominated by 3COM. The avg consumer buys modems from CompUSA. All roads to the consumer have to go through 3COM. That is 3COM's strength. The brand, the distribution and the end-user. Something doesn't add up when you think about the USRobotics acqusition. Instead of moving upstream, 3COM went downstream to the low-margin. This is not necessarily bad if you can have huge scale. This segment is driven by price and replacement cycles. Why has 3COM stumbled so much? If they hadn't bought USRX, would USRX have faced similar pressures? I am not sure. I think 3COM's strategy should be to forge some serious alliances with ISPs. It can't be a PalmPilot company....PalmPilot's value to 3COM is again BRAND. So, why doesn't 3COM leverage its brand to act as the reseller for all access technologies into the home? Anyways, I could go on and on. I think the company had made mistakes and the street is looking for a new strategy and confidence. Clearly, taking the silent approach is not working for senior mgmt. I would fault the Board as well. They should have stepped in and asked for tangible changes. As for me, I am left with a loss and a need to borrow that much more to complete my education.

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