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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 (10290)	12/6/1997 8:07:00 PM
From: Glenn D. Rudolph	Read Replies (4) \| Respond to of 22053

DNAI Pioneers High-Speed, Low-Cost Internet Solutions With Revolutionary ADSL Technology; 384 Connection for as Low as $80 Per Month Business Wire - December 05, 1997 15:51 %DNAI %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %TELECOMMUNICATIONS %INTERACTIVE %MULTIMEDIA %INTERNET %PRODUCT V%BW P%BW BERKELEY, Calif.--(BUSINESS WIRE)--Dec. 4, 1997--DNAI, the top-rated Internet Service Provider, announces its high speed ADSL (Asymmetrical Digital Subscriber Line) service. Available immediately, Direct Network Access offers ADSL service at speeds up to 50 times faster than a standard modem. DNAI's new ADSL service meets customer demand for greater bandwidth at reasonable prices. Users will enjoy access speeds comparable to a T-1 line at prices closer to ISDN. DNAI provides a complete ADSL package enabling users to run a Web, e-mail or other server on their LAN. DNAI offers ADSL service to customers within three miles of Pacific Bell Central Offices: in Danville and San Ramon in the East Bay; in San Jose, Santa Clara, Sunnyvale and Mountain View in the South Bay; and in Burlingame, Los Altos, Palo Alto and Redwood City on the Peninsula. DNAI offers three packages: Single user, NetPac-6, and NetPac-30. Net-Pac-6 and NetPac-30 provide up to five and 30 or more useable hosts respectively. Each of the three packages are offered in two possible bandwidth combinations: 1,540/384, 1.544 Mbps downstream (into the computer or LAN) with 384 Kbps upstream; or 384/384, 384 Kbps in both directions. Customers pay monthly fees to both DNAI and Pacific Bell. DNAI's monthly charges range from $80 to $350 and Pacific Bell's from $80 to $250. Small to medium-size businesses and those with home offices will benefit from having high bandwidth to access the Internet and/or hosting a web site. This incredible speed greatly increases the utility of the Internet by giving faster downloads of graphics-intensive web pages and allowing the use of high-bandwidth technologies such as video conferencing. Remarkable bandwidth is just one of the many advantages of DNAI's ADSL service. With ADSL the Internet connection is continuous -- all the speed, all the time. With a constant Internet link, ADSL eliminates time spent waiting for call set-up and busy signals. ADSL offers users parallel data and voice capability -- allowing simultaneous phone conversation and Internet access on one line. Also, because ADSL works through existing standard phone lines, no new connections are required to initiate service. With the introduction of ADSL, DNAI continues its practice of providing breakthrough technology for its customers. DNAI was the first ISP to offer a full ISDN package in California. DNAI was also one of the first California ISPs to offer support for 56K technology. DNAI's customers have come to expect the latest technology, reliable service and extraordinary technical support. DNAI ranked number one overall in Computer Currents' most recent reader survey rating ISP's in 11 service categories. DNAI offers ADSL as part of a Pacific Bell market trial. ADSL service is expected to be available in all parts of the state by the end of 1998. For more information regarding DNAI's new ADSL service, visit the web site dnai.com and contact Ted Russell by phone, 510/649-2039 or email, trussell@dnai.com . CONTACT: DNAI Ted Russell, 510/649-2039 trussell@dnai.com

To: Dwight E. Karlsen who wrote (10290)	12/7/1997 5:21:00 AM
From: Elroy	Read Replies (1) \| Respond to of 22053

Dwight the Karlsen has written: <<Craig has listed out the history of COMS earnings in the post linked below. Does Craig hold any credibility with this thread? I'm curious why you are quoting Craig?

To: Dwight E. Karlsen who wrote (10290)	12/7/1997 5:39:00 AM
From: Elroy	Read Replies (2) \| Respond to of 22053

Oops. Pressed the submit button a tad too early. Here's Dwight's excerpt from a post by a guy named Craig: "They chose to mention in a footnote that USRX had only $15.2 million in sales for 2 months and then hid some of the cancelled sales in the charge (of course they didn't specify how much). They elected to take a hit to retained earnings to reconcile the balance sheet. Obviously COMS monkeyed with the books to come out with 48 cents a share. It is no coincidence that they pegged the number right on. They took as big as a charge as they could while still "matching" estimates. They stated in their 10Q "Revenues for the two-month period were below historical revenue trends due primarily to the desire to reduce levels of channel inventory and conform sales return and allowance reserve philosiphies with that of the heritage of the 3Com organization." It is obvious that COMS used part of the hefty charge they took to reduce channel inventories last Q. THAT STILL WASN'T ENOUGH. They had to warn about a "minimal profit" this Q to reduce the channel some more! To make matters worse they said they are going to need another couple hundred million next quarter to do it again!" --------- end excerpt from Craig's post ------------ *Yeah, so it seems that USRobotics keeps larger channel inventories than 3Com would like. So? No one is going to argue with that issue. The key issues are that 3Com has about 35% share in the remote access market via the Total Control Hub, has #1 position in desktop and workgroup Ethernet switching, holds about 40-50% of U.S. modem market share and is the market share leader in adapters. 3Com will release more new systems (hubs/switches/routers) products in their fiscal 1998 year than in any previous year. 3Com has always (check out their history, Dwight) executed well when releasing new products into their large base of channel partners. Given all these things and realizing that 3Com inherited a stuffed channel, why would the stock decline from its current level??? The channel problems are well known, and the very positive outlook for 1998 is also well known. As the number 2 player in networking, who would want to sell/short this stock??? Do you really believe the stock is more likely to end 1998 at 20 something or 60 something?