To: AlanH who wrote (14855 ) 3/25/1998 12:07:00 AM From: Scott Lerner Respond to
I am just suggesting that COMS sells through distributors unlike CISCO. COMS chose to cut back on the outstanding inventory levels already shipped in prior quarters. This means that the sales declined this quarter because they were booked (stuffed) in prior quarters. Should look better going forward if COMS resumes selling into the channel. CISCO sells direct, therefore they do not have this problem (I am long CSCO). I am long some COMS, but at 32. I have successfully personally traded it twice on the long side in the 30's. I think it will do well over the next 12 months as the new products take hold. In addition, Asia will recover and be stronger than ever. Just look at the Latin American/Mexican debacle/crash of '94. Remember the Peso devaluation and the Chiappas Indian revolt? Things couldn't be worse right? Stocks down 50% and more. An investment in Telmex in the low 20's, down from 60+ levels would have been brilliant as it is now 57! It also pays a $1.70 dividend. This is a better return than any fund in the same time period! Still not back to where it was but if you bought then you would be very wealthy.
