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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Inga who wrote (25031)	12/1/1997 10:44:00 AM
From: fiberman	Respond to of 61433

The following is from briefing.com regarding COMS: 3COM CORP. (COMS) 36 1/4 CLOSED. Shares of this computer networking concern could get a positive boost this morning following a positive article in this week's Barron's magazine, although a significant return on investment from its acquisition of US Robotics may still lie well into the future. According to the article, cable-TV modems are expected to be the new rage, particularly because manufacturers have already agreed to a common standard, in contrast to the lack of an agreement in the phone modems arena for 56Kbps. While 3Com will remain dependent on sales of traditional modems over the near-term which will probably hurt earnings over this period, the potential to sell cable modems could be very profitable for this networking concern. According to the article, by the year 2003, cable-TV modems alone could generate more than $2 billion in annual revenues for 3Com. Cable modems will allow personal computers to receive data from the Internet at 100 times faster than today's 28.8Kbps modems. The roll-out for these new devices is expected to occur sometime in the second-half of 1998. And while 3Com is expected to have competition in this area from Motorola (MOT 62 7/8), Samsung, Sony (SNE 83 1/2), and Panasonic, a unit of Matsushita, with 3Com's dominant share of the phone modem sales to retail outlets, 3Com is expected to become a dominant player in this new area. Accordingly, according to the article, the coming spike in cable-modem sales is not fully reflected in the stock price of 3Com. Thus, while the stock has experienced a very bumpy ride during the past year, particularly after its sales and earnings growth rate began to slow, the longer-term outlook remains very bullish. Unfortunately, during the next couple of quarters, earnings could remain in check due to sagging phone modem sales and the fact that network cards and local-area network systems are also experiencing price competition.

To: Inga who wrote (25031)	12/1/1997 11:39:00 AM
From: paul lin	Respond to of 61433

Lanny, that is my understanding too. That is why I am thinking that cpq is more likely to acquire adsp or accessbeyond (I do not own any of these two) because of the synergy. Window NT server is hot hot, if two cards are added and make a NT server a RAS, it will be great for the small business. PL