Here's the excerpt from Barron's that pertains to 3COM;
Q: What about the notion of Intel buying 3Com or one of its rivals?
Landis: Intel-3Com discussions have been talked about ad nauseam. I
don't like the idea of them buying all of 3Com's current headaches.
Wick: It would be awkward. The Justice Department probably
wouldn't like the idea of the No.1 and No. 2 players in the
Ethernet-adapter-card market merging together. So scratch that part
of the business. The modem business long-term is something that is
probably going to experience even further price pressure, and might
move on to being a few chips on a motherboard. And I don't think Intel
wants to be in the Palm Pilot business.
"...buying all of 3Com's current headaches" such as? Does this
nitwit not get daily updates on 3Com news? Or does he just
not believe that COMS has turned the corner...as I've stated
before, there are still many disbelievers for which we can
take trading profits, if we are nimble enough.
>>The modem business long-term is something that is probably going to experience even further price pressure,...<<
The guy is talking off the top of his head. Now you how how
Money Managers who shuffle around Billions of $$ think; in
30 second generalities which don't have much thought content.
Modems are not key to COMS, but watch COMS increase margins on
this in '99.
>>and might move on to being a few chips on a motherboard.<<
This guy is going on a "might". Several network engineers
on this thread have stated it's impractical and not going to
happen. Even INTC themselves have stated they don't intend to do this. OEMs don't want this.
Steve, if you can, what was the exact reason again?
>>And I don't think Intel wants to be in the Palm Pilot business.<<
So, COMS is a NIC, modem, and Palm Pilot company. I'll be selling
this guy some of my shares at $100.
Here's another comment about INTC's network strategy"
Landis: So far, they've been a huge loser in networking. They have
been in the hub business, and the low-end Ethernet switch business, but they're going nowhere fast.
INTC and NETWORKING don't mix and never will. INTC taking market share from COMS is BS.
joe
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