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

To: AreWeThereYet who wrote (13912)	2/13/1998 8:25:00 AM
From: Elmer	Read Replies (2) \| Respond to of 45548

Andy, I looked at the COMS chart from dbc.com this morning.The stock has traded below its simple 50 day moving average for all but about 2 weeks during the last six months. Now, unless they are going out of business (which they aren't), the wash out is over done. That's why so many people bought call options yesterday when it got above the 50 DMA. Even if this doesn't hold and we go back down, the odds greatly favor the longs over the next month or two. The risk reward trade off favors the reward. As evidence, look back a week ago. Cowen & Co. put out a note that expressed concern over the company's inventory levels. That note pushed the stock down about 7%. In one week, the stock has gotten back to that preannouncement level. My point is that it seems like it doesn't want to go down anymore. In an earlier post, I said that a lot of people are tempted to buy but are afraid that the next earnings number will be weak. A friend once told me that the market frustrates most of the people most of the time. I would guess that a prominent brokerage firm will upgrade COMS prior to earnings thereby running up the price and frustrating the uncommitted. But who knows. Best Regards, David