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

To: Mehrdad Arya who wrote (32722)	7/31/1999 4:18:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 45548

My question to you is why do you own COMS when you are so negative about its prospects? pure and simple. Takeover speculation. But it's a small position. Your positions are well taken, and to be precise, quite conceivable but they are no way etched in stone. Everything would be true if COMS sat back complacently and watched its competition and potential competition gnaw away at its business. Well, if history is any indication this is precisely what they'll do. How long have you been watching COMS and the communications sector? COMS has award winning products that are currently being marketed. Not only are they well received by the consumer but they are recommended by the experts, As I said before, low margin, highly competitive market. This will not change the outlook for COMS financials. MSFT is currently working with COMS in the home networking sector and SUNW is working with COMS in developing software to facilitate easier access to the Internet. This is an area that I could go on about. Believe me, these relationships are more press releases than cooperative development. Take it from someone who is caught up in the middle of the stuff. Intel is still far away from coming out with a product that will render NIC's as obsolete Really.. Have you heard of LOM (Lan on Motherborad) technology. Both COMS and INTC are offering such products today. LOM now makes up for 20% of all NIC shipments - up from practically nothing in 96 and 10% in 97. INTC has the advantange in the LOM space due to their manufacturing efficiencies providing them with it superior price points. INTC's recent acquistion of SoftCom and Level ONE will put the nail in this coffin. This networking technology is the one thing that stood between INTC and dominance in the NIC, home networking space. COMS is in real trouble in the NIC market...make no mistake. Hyperbole will not put COMS into the annuls of history, and all the talk that the competition is going to, going to, going to, going to, going to is cheap, let see some action. The fact that the market is continuing to grow while COMS revenues remain flat isn't enough reality for you? Cisco's revenues have doubled in this time... in fact Cisco revenues have increased more than the total revenues of COMS in only the past 2 years. A little due diligence doesn't hurt. Agreed. Maybe you should do some. Believe me when I tell you that I do know what I'm talking about here. ...but then, you don't have to. I can tell you that if I had mortgaged two houses and "bet the farm", I'd be listening to anyone that appeared to have opinions rooted in facts. COMS is in trouble in the NIC's, can't move into Cisco's market and is left with PALM. They have done nothing to reduce costs or create new business. Eric indeed does appear to be attempting a last gasp by moving into the lightweight OS market....a gasp that will not work. As I said, I'm hoping that he gives up and sells for $35 or $40 before it's too late. If not I fear COMS will be trading in the teens and I will be out a few thousand and you will be looking for a roof to put over your head. OG