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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

0.0%

Nov 4 10:50 AM EST

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To: Harold S. Kirby who wrote (29404)	4/4/1999 12:36:00 PM
From: hitesh puri	Read Replies (2) of 45548

Can anyone in the know tell me what has changed with Act Networks (ANET) ? Here is a company that was completely smashed in early 97 by slowing sales in the Frame Relay arena and also by the dominance of former Cascade Communications. They had been releasing a string of earnings disappointments and stock went to 5 in Oct 98 only to be up 400% in 6 months to 20. Wall Street is very fickle with tech stocks. One set of investors gets burnt and they dump the stock vowing never to look at it again. But things change so fast in the tech world (technological advancements, demand pick up) that suddenly a different set of investors gets interested in the stock (along with the old sticklers for pain) that it comes roaring back. Unfortunately I dont think that time is here for COMS to do that. Before it does that it has to inflict some more pain and make more people throw in the towel. I very strongly believe COMS will make a multi year bottom at around 18 by this fall (17-18 represents PSR of little above 1 and also a resistance of 4 years ago). By that time visibility would have improved (management changes if any, product mix changes, Enterprise PC demand) making the risk/reward ratio at that level attractive. Investors would be all over it for a ride to high 30's yielding a 100% gain. For COMS to go beyond that requires it break this long term down trend and that is only possible if it becomes a lean mean machine. Its too fat with a lot of fingers in too many empty honey jars right now. -Hitesh

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