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

To: Glenn D. Rudolph who wrote (13066)	1/9/1998 12:39:00 PM
From: James A. Shankland	Read Replies (1) \| Respond to of 45548

I am trying to find a few good reasons to continue to hold my COMS. Most of their products are commodities now. It appears the price of ASND and COMS will converge. Any thoughts? I don't see why ASND and COMS should converge (other than the obvious, short-term observation that ASND's per-share price is lower than COMS's, and COMS is trending down). I think ASND is changing from getting the bulk of its revenues from RAS products, where margins are declining, to carrier-class core switching components (thanks, CSCC), where margins are high. So I'm quite bullish on ASND for the next 6-12 months. I'm more cautious on COMS, because of the commodity nature of their product mix. But that will change. If COMS and ROK can end their bickering and adopt a 56K standard despite themselves, that should give a lift. (You can, after all, make money on commodity products; just ask Proctor & Gamble.) Meanwhile, they have to keep pushing on cable modems and xDSL; but the layer-3 switching gear seems like the most promising front. There is a great deal of uncertainty built into the stock price at these levels, so as a long-term investor, there's no way I'm bailing out now. I'll write covered calls from time to time when the stock blips up (have some Jan 35's and 40's out now that will be gone in a week), and bide my time. Two years from now, low 30's for COMS will look like a ridiculous bargain.