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

To: John Ritter who wrote (10108)	11/12/1997 9:02:00 PM
From: Pancho Villa	Respond to of 45548

>>How do you use the [52 week] hi/lo ratio to make buying/selling decisions?<< The fact that a stock is close to its 52 week low does not necessarily mean it is a good buy. Actually several of the short positions I hold are close to the 52 week low and I fully expect them to continue falling. It is only when you combine a low valuation [with a price close to the 52 week low but not necessarily], for example a low pe multiple for a high growth situation (e.g., COMS), that you may conclude you may have a buy opportunity. However, timing these things is difficult and also opinions differ, for example I have been willing to buy COMS at 47, ...36 and will probably buy more tomorrow while you may think it is still overvalued. For example, at the current price, INTC is overvalued I would buy at 65 or bellow for a variety of reasons that I have discussed in their group some time ago, Needless to say the people at INTC and so far the market disagrees with my opinion. I guess the answer is that there are no easy answers for axample saying "I will buy COMS because this was an 80 dollar stock and it now trades at 30 is foolish. You also need to look at the fundamentals. IMO COMS was overpriced at 80 but I also think it is underpriced now. This does not mean it may not fall further. No one really knows. Do you think 20+ miilion shares would have traded today if people knew the price next week will 25? Regards, Pancho

To: John Ritter who wrote (10108)	11/12/1997 9:35:00 PM
From: TechAlive	Read Replies (2) \| Respond to of 45548

I'd wait a few more days to buy COMS yet -> Its still going down. It will probably go into $20's, maybe even low $20's. I doubt it will go below $20 though. This is part of a long overdue correction, esp. in the tech sector. Asia is weak and market won't stabilize until the correction is complete there. Analysts use this time to unleash all the bad news they can to lower expectations. The blood-letting now will permit greater growth ops later. I see this as just part of the market cycle - growth and harvest. There's been a good crop, and its time to reap. Its good to see stocks return to realistic market valuations and multiples. Only problem is if you went long too late in the cycle. You either have to cut your losses now or wait. COMS, and all these comm stocks for that matter are excellent long term plays. Tony.