To All of us Robotic holders:
FROM GEORGE KELLY -MORGAN STANLEY
At the forefront, says Kelly, will be two companies he's recommending, including the ill-fated 3COM. The stock took another hit in late February when it announced plans to buy modem maker U.S. Robotics. But patient investors will be "very well rewarded," Kelly says. "It's half the price it was, and it's still No. 2 player in the industry." He's looking for the stock to top $52 within a year.
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Modem maker U.S. Robotics returned an almost equally impressive 520 percent. The company had strong foreign sales of its networking products, particularly among Japanese Internet-access companies and telecommunications firms. Furthermore, Robotics received wide acceptance for its new x2 technology, which greatly increases Internet and on-line connection speeds. Steven Levy, a tech analyst at Oppenheimer, is still sweet on the company, predicting a 1997 year-end price target of $130 to $140 up from its current $62 share price. |
