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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (30586)	1/15/1998 2:56:00 PM
From: polarisnh	Respond to of 61433

Sector, Those 3Com numbers only go to show what I have been saying all along. 55% of COMS revenue is derived from commodity items (Modems & Adapter Cards) which have low margins and intense competition (Intel, SMC, Madge, Etc). 13% of its revenue are generated in RAS/RAC where 3Com is probably the #3 player and is starting to feel a little more margin squeeze. 32% of their revenue comes from their Enterprise sales which includes the low-end stackable hubs which sell dirt cheap. When it comes to high-end Enterprise equipment, 3Com is a fringe player behind Cisco, Cabletron, and Bay. I feel that 3Com's margins will continue to erode and look for their P/E to get adjusted even more. IMHO, Steve