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

To: JHC44 who wrote (10695)	11/21/1997 9:32:00 PM
From: Glenn D. Rudolph	Respond to of 45548

I agree that this much standard deviation might appear on a much less visible stock, but COMS???? They sure don't seem invisible to me. JHC, I answered more for me than for any other reason. I wanted to reason this out. It is my opinion that COMS is undervalued due to lack of visibility. I am referring the visibility as quantiative earnings projections. There are concerns amount the amount of the 10 base T NIC cards in channen that need marked down and modems from USRX. It appears no one has a handle on the dollar amount of the mark downs. Thus, lack of short term visibility in earnings. The street hates uncertainty. They will stay away from COMS until they feel comfortable with a close to agreed upon earnings estimate. Paul Johnson of Robertson Stephenson appears to feel this write down will be taken against earnings and not as a one time charge. In either case, it is part of operations. We are seeing estimates that include this mark down and some that do not. I will be happy to get this quarter out of the way with all the inventory in question marked down so this issue does not surface again. I believe management will take this approach so I agree with Paul Johnson. That is scary because of some things I said about his report on ASND a few months ago. I did not like the way he came to his conclusions but he was correct none the less. Glenn