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

To: hitesh puri who wrote (13752)	2/5/1998 5:48:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

"3Com Off 6%; Analyst Says May Not Hit Modem Inventory Goal " Dow Jones Newswires -- February 5, 1998 NEW YORK (Dow Jones)--A 6.1% selloff in the shares of 3Com Corp. (COMS) could be the result of comments from Cowen & Co. that suggest the company may be struggling to reduce its inventory of modems. Cowen analyst Christopher Stix wasn't immediately available, but in a research note Thursday morning, he said 3Com may not hit its targeted reductions in its modem inventory. Stix also said that while 3Com has an "exceptionally strong" new product cycle coming, it may face difficulty exceeding industry growth rates, and expanding its margins may be hindered by a challenging pricing environment. "We believe that the company will achieve recognition in the market for its inventory reductions, assuming they are complete at the end of the (fiscal) third quarter, even if the company does not achieve consensus earnings per share of 14 cents," Stix said in his note. Stix said 3Com's expense controls are on track. Officials at the Santa Clara, Calif., concern weren't immediately available. Mang