Here is a snippet from Breifing on some of our favorites.
Computer Networking
Brief: 3Com continued to slide after making cautionary comments on Wednesday... On the flip side, beleaguered FORE Systems staged an impressive rally amid very heavy volume... Stock up on news that company anticipates revenues from the Asia region will double... This region provides 20%-25% of FORE's international revenues and had been a cause of concern in recent quarters. The company is a leader in ATM technology and an oft mentioned takeover target... While Thursday's breakout is encouraging, the stock's history of price and earnings instability make this an investment candidate for aggressive growth, risk-tolerant investors.
Components:Ascend Communications (ASND), Bay Networks (BAY), Cabletron Systems (CS), Cisco Systems (CSCO), Fore Systems (FORE), Newbridge Networks (NN), Shiva Corp. (SHVA), ThreeCom Corp (COMS), Vanstar Corp. (VST)
Our Favorites:
ASND Recent pullback overdone... Strong earnings growth potential...
Values... L/t benefit of Cascade purchase... Look for full
recovery.
CSCO Industry leader rebounding from group sell-off... Market
penchant for large-cap tech stocks also underpinning stock.
COMS Merger with U.S. Robotics will be l/t positive... Improving relative strength, momentum... Values.
Caution Advised:
BAY Recent rally leaves stock trading at relatively lofty
valuations, especially considering stock's history of earnings
instability. |
