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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Bruce L who wrote (32622)	7/26/1999 10:55:00 AM
From: Mehrdad Arya	Respond to of 45548

Leaving the merits of Technicians aside, we have to include them as a variable in our decisions. IMHO technicians try to understand the sentiment of the market. If you are a long term investor, their analysis seems more like the alchemy of a magician. In some ways they are like Tarrot Card readers. LOL Just bear in mind COMS is fundamentally very strong and is in the process of making numerous structural changes so that it will be positioned well for the new wave of technologies in broadband and wireless communications. With regard to numerous employees leaving to open their own companies; it should be noted that when a company is bought in a M/A most of its top brass eventually leave to open another company or head another company. You can't have too many chefs run the same kitchen. So this should not be misconstrued as a negative turn at COMS. This happens in the best of companies, take for example the engineers that left CSCO to create Juniper (JNPR). COMS has been very conservative in its last 10Q, this I surmise is because of the pending litigation. They have also learned that it is better to surprise the street than not meet high expectations. I have a feeling they will easily meet their earnings expectation and with a bias on the up side. Investor Relations agreed that that their systems division was growing and doing very well. The Palm division is also doing very well. The NIC and Modem division are still COMS area of dominance, even though they expect to lose a small fraction to competition. Summary: 1. Palm - Leader in PDA's, best OS, very well received by public and vendors. 2. Systems - Sequentially growing very well, receiving high marks in its sector 3. NIC/Modems, PCMCIA cards etc. - competition causing lower margins but COMS has still been able to maintain dominance. COMS' opening gambit in broadband and wireless access will definitely keep it as a power house to be recognized. Their Cable Modems have been universally certified and they are are ahead of the competition in DSL devises. COMS has definitely made the right moves with regard to the aforesaid sectors and it has also made its operations more efficient. If we are patient we will prevail. That's all I have to say.

To: Bruce L who wrote (32622)	7/26/1999 11:09:00 AM
From: Mehrdad Arya	Read Replies (1) \| Respond to of 45548

What I meant with regard to Luck and Fraud was, in the short term you either have to be lucky or have inside information that the public is not privy to. An example, as CEO, CFO or any other director you are informed that you are about to lose a major client, which you know will definitely have an adverse effect on the companies earnings. Owing to this you decide to sell your interest in the company before you disclose this to the public. This is just one example of fraud. Here you are guaranteed to make a windfall. The reverse could be also true in that the company is about to acquire a new heavy weight client that will show positive ramifications on the balance sheet.