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

To: S. M. SAIFEE who wrote (34353)	9/21/1999 6:28:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 45548

S.M. If COMS remains above $30 for the remainder of the week I will eat my words... I still believe that we'll see $25 in the next 3 weeks. Instanet means sqwat. 1. Networking business is still not growing at market rate..they are still losing revenues in core networking 2. NIC and modem business market has been given up. Geez guys...rather than giving up and milking this business until it's worthless it would have made alot more sense to sell it to someone. NIC and modem markets are indeed low margin and I'd be so happy to see COMS get rid of it. But this do nothing approach is pathetic. Revenues off 19%!!! IN a market where revenues are still growing slightly. 3. PALM..OK... but this isn't COMS' business anymore. 4. Cable and DSL was a bunch of hand waving... Cable modems to Time Warner...oh, now there's a high margin market! 5. Service Provider wins (Sprint being the only exception) did not exist 6. COMS positioned their LAN telephony solution as leading the industry...going as far as to say they have the only solution. Huh? Have they checked with NT, LU, or CSCO? They all have LAN based telephony solution. What a crock. Furthermore amongst these vendors none really consider COMS a threat in this space. 7. Broadband... cable modems and CableLabs approval...big deal.. Sony, Samnsung, GI and others have already been approved as DOCSIS compliant...COMS isn't. Also they confirmed compatibility with G.lite DSLAM in the DSL space. Shame that everyone is already moving to DMT Issue 2. COMS Is late again....and what about DSLAM's and cable head ends??? That's where the margins are... 8. Back to wins. COMS has a nice list of enterprise wins but hardly enough to push this company into the top tier. Furthermore they're still using last years technology... IP over ATM is fine...but what about optics and high speed routing. Customers want to move away from these hybrid networks due to cost of support and maintenance. How will COMS compete??? What's the plan??? Now...we all know that stock valuations aren't always based upon a company's success..most of the time it's uniformed investors (at least the last few years it's been this way) that move valuations around. The crowd on instanet right now may be lucky in the end but from what I can see COMS is still COMS. Captain was right... the CFO did a great job with the numbers but in the end nothing has really changed. They're still losing market share in nearly every segment with the exception of PALM which is being spun-off. OG