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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Dwight E. Karlsen who wrote (9211)	11/14/1997 11:19:00 AM
From: Dee Jay	Read Replies (2) \| Respond to of 22053

"It's possible IMO, that he would want to wait and make sure all the 3Com kids had sold all the lemonade they wanted to. He knew what reforms would do to the share price, so he simply waited until his people wouldn't be damaged." If your surmise is correct it brings back that old Nixon-era question: what did Eric know and when did he know it? Dee Jay no, you're not slow - you weren't supposed to know about it. Connecting dots ain't easy when some of the dots are hidden from you.

To: Dwight E. Karlsen who wrote (9211)	11/14/1997 12:35:00 PM
From: Valentino	Read Replies (2) \| Respond to of 22053

Re: High Inventories: My Read My hypothesis goes like this: To win the standards battle, USRX wanted to get as many X2 modems in distribution channels as fast as possible. This would accomplish: 1, preempt Rockwell;2, jump start the installed base for X2;3, motivate the distributors;4, influence the ISPs. This aggressive strategy was the correct response to the looming X2/FLEX standards fight. It's downside; if the standards fight was drawn out, high inventories. This is what we are seeing today. I take issue with the innuendo (NY Times)being spread that somehow this inventory problem is a result of USRX's sinister motives to falsify sales figures and pump up their income statement to raise their acquisition price. What is evident is that once the high inventories became a problem, COMS/USRX used accounting slight-of-hand to minimize the damage. I think it would have been extremely short sighted for Eric B. to have immediately announced that X2 modems weren't selling as well as anticipated. Can you imagine how many ISPs would have committed to FLEX after that kind of annoucement. My point here is that COMS management is sound. They're not a bunch of sleazeballs as Greenberg and the NY Times would have us believe. Valentino