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

To: joe who wrote (17333)	6/12/1998 10:04:00 PM
From: chenys	Respond to of 45548

On the bar chart, today's low hit right on the support from a trend line formed by the May 1's 35 and mid-May's 30. It was a resistance line Wayne talked about, which had been broken by the recent "run-up" and now becomes a support. Using closing prices, it could fall further, but then one has to ask: is it reasonable to fall more or not? If yes, is it really going to get to 18 (not that far)? (Going to 18 with 30M volume and then closing at 24 would be very impressive!) If not, then it might as well get it over with and rush to 30. It seems neutral stochastically and money-flow-wise, but from RSI, the strength is trending higher though the price is still at 24. Last week, when it was closed at 24, the 14-day RSI was just below 20%, now it is much higher, at about 35%. Usually, such divergence is a precursor to a subsequent rally. It seems that many a time coms would have a 3 or 4 day reversal, and, therefore,closing at 24 on the 3rd straight day of sell-off is very encouraging, especially with a volume of almost 10M. All weighed, it makes sense to call it a double bottom. But, in any case, it is Friday, let's go and have a life, at least for a day or two....

To: joe who wrote (17333)	6/12/1998 10:20:00 PM
From: Steve Porter	Respond to of 45548

joe, Yes, it looks like the numbers are consistent with a bottom. I guess what I'm worried about is more bad news from ASIA that sends the market lower. Well in National's conference call (which should be listened to by anyone in the semi industry since they have a fair amount of Asian exposure) they said they were "starting" to see customers coming back from Asia. To me this seems to indicate that for the "working" asia (i.e. not the banks or governments) things are start to pick up. On one condition. That you've never been wrong in the market<gg> (hope you don't mind the questions - this market has made all of us look like fools at one time or another...I'm working on minimizing these times<g>) Joe, the market has never made me look bad except for one really bad play I had on Cyrix, but the problem there is I "Fell in love with the stock" and I got burned in a big way. I don't love COMS. In fact I HATE USR, but as I company I feel they are a sound investment. In addition I feel that Cisco is getting fat and lazy. In the coming consolidated networking/communications market there will only be a few key players. I am counting on only two surviving intact right now: COMS and CSCO. The rest (NN, BAY, ASND, etc.) will all have to transform themselves to fit in. COMS would have been in that "need to change" list 8 months ago. Steve