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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: RFF who wrote (4402)	3/4/1998 2:48:00 PM
From: Bosco	Respond to of 6980

Dear RFF - in a way, it is rational, from the allocation perspective. I mean, if it is a strong sector and a strong mkt, most stks will be up, even for weaklings unless there is dire news. However, if the sector and/or the mkt is not as strong, there are other forces at work. Money tends to flow to the performers. Worse, there are hedge funds who would long the strong and short the weak of the sector at the same time. Today, COMS got a good boost from the upgrade, its strength is likely at the expense of BAY's weakness. Just a theory rgds Bosco

To: RFF who wrote (4402)	3/4/1998 6:16:00 PM
From: WiseGuy	Read Replies (1) \| Respond to of 6980

Thread, have you noticed Intel has warned? Tomorrow is going to be horrible. Message 3601184

To: RFF who wrote (4402)	3/4/1998 10:20:00 PM
From: mr. picker	Respond to of 6980

from briefing.com . 3COM CORP (COMS) 37 1/2 +2 1/4. This networking company's shares started the day to the upside and have steadily moved higher, fueled by a DLJ upgrade from "market perform" to "buy" issued before the market's open. This afternoon, the stock also received a Cowen & Co upgrade, from "neutral" to "buy." However, let's focus on the DLJ move, because it is pretty peculiar. While many investors read about the upgrade this morning, or will see it in the paper tonight and tomorrow, the vast majority of them will not be aware that DLJ also thinks that COMS will miss its quarter. According to DLJ analyst Stephen Koffler, COMS is likely to miss the current First Call mean estimate of $0.14 a share for the 3rd qtr not by just one or two cents, but by eight to nine cents. That's right, the guy expects an earnings shortfall of 57%-64% and he's upgrading the stock. What is the rationale behind such a move. Well, according to Mr. Koffler, the weak numbers wouldn't really be a disappointment, as the shortfall is already priced into the stock. In his opinion the only thing that could trip up 3Com, other than earnings that are even more abysmal than his $0.05-$0.06 a share prediction, would be a disappointment in channel inventory. Other than that, the DLJ analyst thinks the fundamentals have bottomed and the stock looks fairly attractive from here, as investors start to value 3Com based on its strong new products and begin to forget about the problems that have plagued the company's modem business.