Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Igor who wrote (15545)	5/7/1998 4:31:00 PM
From: jim bender	Respond to of 45548

NEW YORK (Dow Jones)--3Com Corp. (COMS) shares fell nearly 7% on heavy volume Thursday on renewed concerns about the company's inventory levels and after Deutsche Morgan Grenfell Inc. analyst Paul Weinstein cut his earnings estimates for the networking equipment maker. 3Com in mid-March reported disappointing earnings for its fiscal third quarter ended in February. But analysts and company officials have said since then that the outlook is brightening because 3Com has reduced excess channel inventories in its three main product lines: modems, adapters cards and systems products, which include Ethernet switches and modem systems. The company has also put in place a new business model that calls for lower gross margins as well as lower expenses. But one portfolio manager, Jeff Matthews of RAM Partners, aid he has heard 3Com may still be struggling with its channel inventory levels, particularly for modems. 3Com's shares were recently down 2 9/32, or 6.6%, at 32 1/8 on Nasdaq volume of 25.6 million, compared with a daily average of 6.9 million.

To: Igor who wrote (15545)	5/7/1998 4:43:00 PM
From: joe	Respond to of 45548

Igor, That's sort of how I see it... >>If we can not sell v.90 modems we may soon have a fire sale on those too. $35??<< What ever it's going to take to start selling the v.90s. >>I have a feeling that 56K modem market was saturated last year.<< Yes, the market was saturated -- in the COMS closet. Inventory was real high - but for good reasons.. The modems didn't sell because of the standards war with Rockwell.... The standard got set a few months ago, but now a lot of bad feelings have to be overcome to get modems selling again. IMO - there's nothing else can come close to taking it's (any 56k modem) place in the next step of spreading the internet revolution. xDSL & Cable modems will eventually come around, but they are much harder to make happen than the v.90. AND, the HOME USER isn't going to want to spend $100/month (or some very high price) for great internet speed. So, we either sit around, and wait a few years till xDSL or Cable modems gets cheap. Or we decide that 56K are still a whole lot better than 14.4 and 28.8 and 33.6. COMS somehow has to get the message across that these modems are OK to buy now; they really actually work - I guess they need some new type of marketing effort to erase negative FUD from the past. joe