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

To: S. M. SAIFEE who wrote (39519)	2/19/2000 6:14:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 45548

S M -- Unless the mkts go completely to crap IMO COMS will take another run at 75++. The pull back was expected after the fast run,, Fri was not a bad reaction to a general sell off,, As it gets a little closer I expect buyers to return for the IPO.... Thats when the last of mine goes,,, Leaps do not interest me on this issue. 100 may be conservative or ?? but 100 seems high to me especially until the mkts stabilize a little... I hope 100 is on the low side for those that hold through the distribution,,,

To: S. M. SAIFEE who wrote (39519)	2/19/2000 11:18:00 PM
From: mr.mark	Respond to of 45548

February 18, 2000 SMARTMONEY.COM: Who's on Nortel's Shopping List? By ALEC APPELBAUM Smartmoney.com NEW YORK -- Nortel Networks (NT) stock has tripled over the past year, as CEO John Roth has made the former phone-company-equipment supplier into an Internet powerhouse. Nortel's ultra-fast OC-192 switch has left Lucent (LU) in the dust. And in the optical-networking-equipment field, Nortel is outselling Lucent by over $100 million annually, according to research by Sanford C. Bernstein. But its success hasn't prevented Nortel from looking outside itself for acquisitions in innovative and complementary fields. Over the past couple of years, the company has been making about one acquisition per quarter. That pace may pick-up once BCE (BCE) sells its $50 billion stake in the company to the public. BCE currently owns over 30% of Nortel's stock, but has announced its intention to sell its stake on the public market. With BCE out of the picture, Nortel will have greater control over its own destiny. Nortel spokesman Jeff Ferry agrees that the BCE stock sale will make acquisitions easier. And he reiterated the company's four target areas: wireless products, Internet-phone-service gear, optics and professional services. Of course he wouldn't name names. But, to come up with a list, we went looking for bare areas in Nortel's equipment closet. We had to look pretty hard. Unlike Lucent at the beginning of 1999, when it had to pony up $19 billion for Ascend Communications in order to keep up with its customers' Internet intentions, Nortel doesn't show any gaping holes. It might profit from the purchase of a maker of chips that are used in Nortel's laser products. "The more [parts of the system] you make, the more your chances of being able to ship faster and in higher volumes," says Jay Liebowitz, who directs the optical component practice for market research firm RHK. In addition, Nortel could win favor with customers like France Telecom (FTE) and Metromedia Fiber Networks (MFNX) by being a reliable supplier of both components and finished products. If Lucent goes this route, possible acquisitions include Vitesse Semiconductor (VTTS), SDL (SDLI) or Avanex (AVNX). Of these, Vitesse is the cheapest. But it still trades at 101 times forward earnings. SDL sells at 264 times 2000 earnings. And Avanex, which just went public two weeks ago, lost $19 million in six months as a public company, and trades at roughly 1,000 times its reported six-month revenue. (Analysts aren't publishing revenue forecasts until the quiet period ends.) Nortel might also venture further into software, an area that is becoming more popular with phone companies as they seek to offer new services like e-commerce and Internet telephony. "I see them needing to buttress software and services, so an Amdocs (DOX), which does billing systems, could be interesting," says Paul Sagawa of Sanford C. Bernstein. Clarent (CLRN) could come on the radar screen for Internet-telephony software. Jim Slaby of Giga Information Group says Nortel may ante up for an innovative switch maker such as Sonus Networks or Convergent Networks. These private companies, which facilitate Internet telephony, would suit Nortel's stated strategic interests. And they also might be cheaper now than after an initial public offering. Finally, says analyst Bob Wilkes of Brown Brothers Harriman, Nortel might aim to fatten its range of products specially designed for corporate networks. "[That] part of their business has not been bowling anybody over," Wilkes says. "Given the big market share that Cisco has, they might do something to bulk up a bit." Public companies in this arena include 3Com (COMS) and Cabletron Systems (CS), but Nortel would probably only buy small pieces of these companies if it did business with them at all. Of course, every company in the communications equipment market could be fodder for Nortel, Lucent or Cisco. After some much merger activity, most of the stocks are pretty expensive. But at 94 times estimated 2000 earnings, Nortel's stock is expensive, too. And that's a good time to go on a shopping spree. For more information and analysis of companies and mutual funds, visit SmartMoney.com at smartmoney.com