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

To: Glenn D. Rudolph who wrote (12705)	12/27/1997 3:02:00 PM
From: Mang Cheng	Read Replies (2) \| Respond to of 45548

Good mention of COMS in Barron this week, rated one of the Jan effect candidate : "Thank You, IRS" December's tax-loss selling can create January's winners By Jay Palmer Monday, December 29, 1997 Bitter winds are blowing down the canyons of New York, and Wall Street has received its first dusting of snow. It's that time of year when savvy investors' thoughts turn to tax-loss selling -- the culling of underperforming stocks to generate losses to offset capital gains. As a result, the final stretch of every calendar year often sees the prices of already underperforming equities pummeled anew, sometimes brutally. Often, a shellacking is well-deserved. But in certain instances, the year-end purging can create bargains, as stocks with no fundamental problems are tossed into the trash bin. In the opening weeks of each new year, so the theory goes, buying by investors with an eye for value should push up the prices of these issues. Traders call this the January Effect or, more graphically, a form of "dead-cat bounce." Jeff Warantz, a senior analyst at Salomon Smith Barney, has run a computer screen, which we reproduce here, to identify beaten-down equities that appear to be fundamentally attractive. Specifically, Warantz searched for companies whose shares are more than 20% below their two-year average price. Right now, in comparison, the Nasdaq and the S&P 500 indexes are more than 4% and 17%, respectively, above their two-year averages. To ensure liquidity, Warantz also eliminated stocks with market caps of less than $300 million. Most important, he lists only issues that are rated "buy" or "outperform" by Salomon Smith Barney and whose annual earnings growth over the next five years is projected to be 15% or better by the firm's analysts. Companies are: coms aam abrx fdc gml feet - Just for feet knt - Kent Electronics mme nscp pair ppod plh phl - Planet Holywood pmts sks schl stjm - St Jude Medical rays - Sunglasses Hut tca tlz tkn Of the 21 companies, only six sell at a prospective multiple higher than the forecast earnings growth. interactive.wsj.com