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

To: Lost in New York who wrote (13360)	1/17/1998 7:25:00 AM
From: craig crawford	Read Replies (2) \| Respond to of 45548

thestreet.com President Tom Nolle at the CIMI consulting firm draws an unusual line between the winners and losers. He expects corporations to buy high volumes of lower-end networking products such as ethernet switches, while deferring purchases of potentially disruptive new technologies such as so-called layer-three switching (these devices employ silicon chips to move higher volumes of data than traditional software-laden routers sold mostly by Cisco). But Nolle says these products are largely indistinguishable, which means networkers will still have to cut prices to compete. Cisco, with gross margins steady at about 65%, is most protected from this price competition. Even though 3Com has historically sold more low-end products, Nolle says Cisco might sell more successfully than 3Com because it has wider gross margins. All these companies are Nolle's clients.