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

To: AreWeThereYet who wrote (14213)	3/4/1998 10:59:00 AM
From: Mang Cheng	Respond to of 45548

From briefing : 08:55 ET ****** 3COM CORP. (COMS) 35 1/4 CLOSED. Shares of computer networking concern should receive a lift this morning as DLJ is making positive comments about the issue and raising its investment view. According to the Wall Street firm, it has bumped its view on the stock from "market perform" to "buy" as it perceives that the inventory channel problems are now behind 3Com and is recommending that investors start to value the networking concern on its strong new products than its past inventory follies. For the past six months, excess inventory has been a drag on earnings and performance which has led the stock to shed 50% of its value during this period. During this period, earnings had come under severe pressure as revenues have fallen below year-ago levels due to the change in its inventory management. And following the currency crisis in Asia, an area in which the sector had relied greatly for growth, 3Com warned that Asia was unlikely to return to its historic above-average industry performance any time soon. But, today's upgrade by DLJ is likely to cast new light on the troubling inventory situation which had prompted the company's profit to plunge in recent quarters. However, for the fiscal Q3 ended in February, earnings are still projected to come in 67% below year-ago net of $0.43 a share as the First Call median projects a profit of $0.14 a share, following a Q2 net of $0.04 a share. The company is due to report its latest quarterly results later this month.