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

To: Eric who wrote (14575)	3/21/1998 11:20:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

Eric, Thanks for reading my post. I think it might be long for some people, but I'm trying to get some of my thoughts organized before COMS earnings report on Tuesday. I'd like to see them make the numbers, but I don't feel that I can count on it yet. Even though they seem like they're ready to fire the V.90 modems much faster than anybody else, I don't see how that could have translated into profits by end of February. One thing that is surprising, is how well the Palm Pilot is doing. I wonder if the profits from that can help in making the .14c? Do you have any opinion on this? Once COMS gets going, maybe the PalmPilot or rather its successor may turn out to be very profitable - even with competition from MSFT. But, we can't be thinking that far ahead yet. <The move will be a fast one!> Yes, I think so too. But why? My reasoning is that it will get a quick boost from shorts covering, but also MMs will try to get in at the same time once they realize that COMS has a profitable future - just like the shorts remember how low it got in February, the MMs remember how high COMS got before that, and also how profitable they were. It's also getting hard for MMs to find cheap value. One of my worries, is that if COMS takes to long to get it's feet on the ground, then this will give the competition more time to duplicate their strategy. On the other hand I don't think COMS strategy of appealing to the mid and small business is being taken that seriously yet. I see possibly Compaq and Intel making inroads in this direction, but I think COMS will compete much better against them due to better networking expertise and better focus by COMS. They've been doing these types of products longer, and have built up a better distribution system for selling their products. COMS, I think will do better if the technology transitions are running faster, and companies are spending more money on hi-tech capital improvements. If there is a pause in spending by businesses, then possibly other companies will have a chance to catch up. Any comments? Joe