SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-67.5%Nov 7 11:47 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eric who wrote (9508)10/30/1997 7:31:00 PM
From: Trylon  Read Replies (1) of 45548
 
The issue with COMS is that it has allowed itself to be portrayed as
a commodity provider. CSCO is strategically positioned as the de facto
standard with attributes of quality, reliability, etc. Let's not argue
facts here. It is the safe choice and not easily displaced.

In contrast, first COMS was fending off continuing assaults from
Intel by reducing price--verifying a growing commodity orientation.
While arguments could be made as to quality, that's a 'loser'
in terms of arguing against Intel. Now after USRX, COMS now has to
justify the notion of consumer-oriented modems
as bringing strategic positioning. Once a standard is established,
we're at a commodity offering--that's what standards do.

COMS was slow to recognize this. The announcement of a network
management strategy working from the edge of the network with
a central management facility has enormous value--if it's real and
COMS has the ability to pull off the missionary sell. This is the
key to the future of COMS. They have to sell it to not only the
techies of the world but to the market analysts. Unfortunately,
it's these guys who define reality when it comes to share prices.

Of course, the inability for COMS to manage its earning (even with
bookkeeping tricks) has put the stock into the 'show me' category. The
company is no longer managing its business, the market is managing it.
The price will likely not have a sustained recovery until reasonable
(not low-ball) estaimates are regularly met and exceeded.

For calibration, I am a long term holder.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News