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

To: Moonray who wrote (16662)	6/3/1998 6:16:00 AM
From: Shroder Wertheim (Hijacked)	Read Replies (1) \| Respond to of 45548

COMS management knows its weakness is in selling into Telco and ISP, but how to get there is the difficult part. Overall, it is fair to say COMS has cheaper and better performance products in the enterprise market than CSCO TODAY (CSCO Cat 5505 is twice the price of CoreBuilder 3500, half the performance as a router, but it is generating Billion revenue for CSCO this year). But the sales number does not add up to CSCO's level. I saw some ex-USRX shareholders anger e-mail in this forum. The big part of COMS shares decline is due to COMS acquisition of USRX. This is not simply a execution of merger issue. It is the modem market, volume up a little bit and price drops a lot, COMS ends up paid premium for a marginal profitable business. Palm is pleasant surprise for COMS, but it is never going to be big part of COMS's profit. Due to the lack of guideline for the upcoming earning, many analysts are cutting the estimate and fear that COMS will not even meet the reduced expections. I think it contributes to the 40% drop in its shares in less than 2 months. I am sure the share will go up as long as COMS reports higher revenue and earning than the previous quarter.

To: Moonray who wrote (16662)	6/3/1998 10:49:00 PM
From: simonds	Read Replies (1) \| Respond to of 45548

Moonray, we are on the same page on ISP upgrade priority. Short of free ISP upgrade like what Ascend did, 3Com should do similar stuff to entice ISP to upgrade. I've noticed "total control" sale program in 3Com's website; that's good, but not enough. Maybe they can give a free (one box) upgrade for every new box purchased, or half price weekend sale on V90 module. You can think of other stuff to speed up the ISP upgrade. Yet I haven't seen a move by 3Com to help the situation. I just hope that this thing is not a symptom of 3Com being too isolated from customers by its channel distributors. I also use their V90 modem, and I'm very happy with it. Regards.