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

To: Eric who wrote (9883)	11/9/1997 2:38:00 AM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

"Suspected Pentium Bug May Harm ISPs" ""This bug looks far worse that FPIV [Pentium's notorious floating point bug of some years ago]" said Sam Trenholme, a developer on the BugTraq list. "Intel will probably be forced to undergo an expensive recall." " wired.com Mang

To: Eric who wrote (9883)	11/9/1997 8:03:00 AM
From: Pancho Villa	Respond to of 45548

Eric, >>Networking is at a crossroads right now. There are many pathways to take. I see six or seven ways to link people and computers to the web.<< great oportunities only develop at times of fear and uncertainty. >>The winner will be the one with the most solutions (and of course good marketing!) Can you folks guess who will win?<< IMO, COMS has a flexible enough research front to adjust to whatever technology wins in the market place. My bet is with COMS. I can't be 100% confident that they will beat the return from the indices in the short term. But confident enough to bet up to 15% of my ranch on it. A key aspect here is to be patient enough to allow for the merger to be fully digested. Some investors are giving up on COMS and going to Cisco. IMO, this move is wrong. Any one with this point of view now would have had stronger reasons to reach this conclusion a long time ago. Why didn't they sell before? after all, COMS has been #2 all along! The merger actually improved COMS position in the market place. I see what we are seeing here is the traders getting out and the sheep following. These folks haven't got a clue of the networking business is all about. IMO, a great time for a contrarian point of view. >>This is a tough place to invest. The greatest returns are with the companies with the highest growth rates. Unfortunately this sector has slowed and shifted somewhat. If a company has disappointed slightly it will be taken out and shot...NO prisoners allowed! << More competition, yes. I am not so sure about slower growth, internet penetration is still well bellow PC penetration and growing extremelly fast. (IMO the PC/CPU business (i.e., DELL, CPQ, INTC) industry will be the one experiencing much lower revenue/eranings growth. (For example, I wouldn't touch any of the three above at the current price levels). IMO, the market's extreme response to disppinting numbers in a volatile complex industry with short product cycles is a reflection of the lack of understanding of the technology businesses. So they focus 100% on what they know about: the short term numbers. Remember that until not too long ago many folks in this business did even knew how to turn on a computer. In addition, many of them are not what you could precisely call rocket scientists. Therefore, if you can see a bit better than them, you can take some of the wounded home, take care of them and then have them work for you in return. Regards, Pancho