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

To: Finder who wrote (17532)	6/16/1998 7:39:00 PM
From: Mang Cheng	Respond to of 45548

Reason for tech-stock rise today : "Stocks Race Higher Amid Powerful Tech-Sector Rally" By TERRI CULLEN INTERACTIVE JOURNAL A powerful rally in the technology sector helped blue chips recover from an early slide Tuesday, despite an earnings downgrade on tech bellwether International Business Machines. But bonds tumbled and the dollar lost ground as international investors moved to take profits. The Dow Jones Industrial Average rose 37.36 to 8665.29 after spending much of Tuesday's session moderately lower. Blue chips bounced off their early lows amid a rally in the technology sector, which surged after Merrill Lynch & Co. analyst Thomas Kurlak released a research report on the semiconductor industry that the market interpreted as a "buy" signal. With the Philadelphia Stock Exchange semiconductor index now off 34% from its 1998 high in late February, the report said, the battered chip sector now presents some "buying opportunities" for long-term investors. It also stated that while "stock prices are expected to decline further," semiconductor shares would probably hold up relatively well should the economy falter given the actions that companies have already taken to reduce oversupply and conserve cash. Mr. Kurlak's comments "triggered a wave of buying in the tech sector that caught a lot of short sellers by surprise, and that seemed to add fuel to the fire," said William Meehan, a market analyst at Cantor Fitzgerald & Co. "The techs have been beaten up pretty badly beaten up, and even the large-caps are looking fairly oversold." The Nasdaq Composite Index, laden with technology shares, soared 37.37, or 2.2%, to 1753.12 and the Russell 2000 index of small stocks gained 4.51 to 438.37. The Standard & Poor's 500-stock index added 10.58 to 1087.59, and the New York Stock Exchange Composite Index rose 4.03 to 558.92. The surge into tech names helped Dow component IBM trim its early losses to end down 2 1/4 to 110. The stock had dropped more than 5 points early in the day after Merrill Lynch & Co. cut its earnings estimates on the computer giant. Steven Kroll, managing director at Monness, Crespi & Hardt, noted that two of the forces that contributed to Monday's sell-off -- tumbling oil price and trading relating to Friday's so-called triple witching -- are now working in the market's favor. A triple-witch refers to the expiration of stock options, stock futures and options on stock indexes that occurs every three months. Oil stocks led the gainers on the Dow Jones Global Industry Groups, as crude oil futures moved higher after six straight days of heavy selling. Mang

To: Finder who wrote (17532)	6/16/1998 7:51:00 PM
From: Igor	Read Replies (2) \| Respond to of 45548

>>Thestreet.com has an article saying that the options crowd is betting on a takover of 3com by Erickson before Firday, note the huge activity in the options which expire on Friday before earnings are announced.<< I think this may be due to perception that 3coms Palmpilot & modem business is more consumer oriented and could have a better synergy with Erricson. However, Erricson would still need a carrier switch product to be able to compete with the likes of ASND, CISCO, Lucent, or Nortel. 3COM has not set an earnings announcement date. I have a feeling that they want to select a last minute strategic date that will help the stock price.