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

To: craig crawford who wrote (11723)	12/6/1997 10:03:00 AM
From: Ramsey Su	Respond to of 45548

Craig, you seem to be the hero and the villian of this thread, depending on the mood of the day. I have a few questions regarding COMS and the network sector in general that I hope you can help me with. A few yrs ago when I was first interested in this sector, there were CSCO, CS, COMS, BAY and Wellfleet (not sure if that is the right order in terms of size back then). I remember the bearish opinion about this high flying group at the time was high and unsustainable profit margins. The reason for the high margin was the fact that each of these companies monopolizes a niche component of the network. Not having a tech background, it appears to me that each of these companies are now encroaching upon each others territory, competing for the one-stop-shop solution. What were once monopolies are now commodities producers, subject to the same price fluctuations in the DRAM and even the DD industries. The bottom line, as a result, has been hit hard even though the industry as a whole is still growing. Do you think this theory is true? If yes, then not only is COMS over-valued at this time, BAY and CSCO may be great short candidates. If the theory is false, what is going to distinguish COMS from the competitors? Comments appreciated. Ramsey