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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00160

0.0%

Jan 16 9:30 AM EST

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To: blankmind who wrote (18615)	7/2/1998 11:17:00 PM
From: KM	Read Replies (1) of 45548

Don't know if ya'll have seen this (sorry if it's a repeat - don't have time to read though a million posts ) but that bad boy Bernie Schafer doesn't agree with you: 3. Overt Optimism, Shaky Performance Means Short 3Com (COMS) Wednesday, July 1, 1998 Shares of 3Com (COMS) rose by almost 16 percent on June 24 when the networking giant announced that its 4Q earnings would beat analyst estimates by $0.01 per share. Though estimates were diminished from previous levels, speculators bet heavily that the rally will continue by adding calls and liquidating puts. In fact, option advisor Bernie Schaeffer reports that call open interest is now three times put open interest. "We see this rally as short lived, Schaeffer says. Fundamentals are "tenuous" as he cites flat revenues that were below the company's own expectations. The technicals are also weak; the stock is meeting resistance at its descending 100-day moving average, and its weekly relative strength vs. the S&P 500 had declined steadily for nearly 12 months. "Overt optimism and shaky fundamentals and technicals is a bearish mix in our view," Shaeffer says. On June 25, he recommended buying the October 37-1/2 put (THQVU).

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