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

To: Brian Channon who wrote (15020)	3/29/1998 2:04:00 AM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

Couple of interesting comments from InvestorTools related to the Networking sector : 1. Undervalued 3Com Supplier Set To Shine In 1999 (BELF) Friday, March 27, 1998 "Bel-Fuse's (BELF) opportunity to see significant demand from its ADSL (Asymmetric Digital Subscriber Line) products is tremendous," Jonathan Steinberg says about the electronic components supplier. "Jupiter Communications, a research company, forecasts that ADSL technology will provide fast- access Internet services to 3.4 million homes by 2002. This means that 1999 could be an excellent year for Bel-Fuse as it ramps up production of ADSL products. The tail end of 1998 could be significant as well." But the real story remains Bel-Fuse's valuation. As Steinberg noted in his March issue, when he first recommended the stock: "not many technology companies grow at 15% to 20% a year and trade at seven times 1997 EBITDA (Earnings Before Interest Taxes Depreciation Amortization, otherwise known as cash flow). The company also trades at 1.15 times its 1997 sales, 13 times its 1997 earnings and 11.6 times (the newsletter's) very conservative estimate for fiscal 1998 of $2.00 per share." In his April issue, Steinberg reiterates his buy recommendation with a price target of $30 per share, or 15 times its fiscal 1998 estimate. For more on Jonathan Steinberg's recommendation see "Bel-Fuse," April 1998, Individual Investor's Special Situations Report. Jonathan Steinberg provides one undervalued stock per month poised for substantial growth and profit. 10. Bay Networks On The Rebound (BAY) Monday, March 23, 1998 "On January 20, the provider of network communication products reported earnings that fell four cents per share shy of analysts' estimates," writes Bernie Schaeffer about Bay Networks (BAY). "Though the shares initially reacted by declining some 13% over the following week, the stock has since surged, gaining over 25% over the past month. The shares have been trending along their 10-day and 20-day moving averages, and have now broken above resistance at 32 following a bounce off the 20-day (moving average) that ended a two-week consolidation between 30-1/2 and 32. "Call activity on BAY has been quiet of late, a sign that the shares have further room to run. Furthermore, we like the implied volatility on BAY's options as they are at their lowest level since August 1997. Finally, the entire networking sector is on the rebound as the relative strength of the AMEX Networking Index (NWX) compared to the SPX has been uptrending since late January. Keep a watch on BAY for further upside potential. "Recommendation: Buy the January 1999 35 call." Schaeffer published this recommendation on February 26, 1998. For more on Bernie Schaeffer's recommendation see "Leaps Portfolio," March 1998, The Option Advisor. Bernie Schaeffer provides practical options recommendations that are simple to understand and execute. investools.com Mang