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

To: chirodoc who wrote (13048)	1/8/1998 9:41:00 PM
From: Mang Cheng	Read Replies (2) \| Respond to of 45548

An article from the BAY/NN thread which is quite supportive of COMS : "Networkers Push Ahead To Next Level - Layer 3 " "Layer 3 switches are about five times faster than routers, but cost one-third the price, says Dataquest's Armstrong. An average Cisco router sells for $100,000, while a 3Com Layer 3 product costs $30,000, he says. 3Com, and perhaps Bay, are well-positioned in the coming Layer 3 battle, says Martin Pyykkonen, an analyst with Furman Selz LLC in San Francisco. " "3Com, the No. 2 play in networking, might have the most riding on Layer 3. Success with its Layer 3 line, called CoreBuilder, would show 3Com's prowess in landing large customer accounts and threaten Cisco, says Furman Selz's Pyykkonen. ''CoreBuilder could be the (industry's) key product in the next six months,'' Pyykkonen said. ''But it's going to be tough to sell against Cisco.'' In the next year, 3Com wants to grab up to 30% of Cisco's $1 billion router business, says Sege. That would be a huge jump. Cisco had 56% of the worldwide router market in the third quarter, compared with only 6% for 3Com, says Dataquest. Sege says corporate users are buying 3Com's Layer 3 equipment to augment their older Cisco routers. " Message 3125256 Mang

To: chirodoc who wrote (13048)	1/8/1998 9:57:00 PM
From: Glenn D. Rudolph	Respond to of 45548

.....my question: will the cable modems fly off the shelves fast enough and soon enough for us to make some money in this stock. i bought in at 34 and now i see it sinking--what do you think of this Q earnings? will we see more downgrades? chirodoc, I have real concerns about COMS. I do not see them having a large lead in cable modems. I am using cable (true cable) and have a Lancity modem which is a division of BAY. Secondly, cable access will not take off as quickly as stated in the articles we are reading. Many cable companies do not have the proper infratructure in place for true cable access to work. The cable system here was a test area for Armstrong Cable. The network here is realatively new so the infrastructure was already in place. That is not true for a lot of cable areas. Ask your local cable company when they plan to offer cable acces. I believe you will get an answer that indicates it is not in the near future. COMS continues to fall. Almost everything they make are commodity items. No high margin geer. Glenn