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

To: craig crawford who wrote (18564)	7/1/1998 9:21:00 PM
From: William Wang	Read Replies (1) \| Respond to of 45548

MoneyFlow is positive today. Volumes Trades Total: 7,699,600 6231 Block: 3,371,700 202 NonBlock: 4,327,900 6029 MoneyFlow: 10,151,950 Avg Traded Price: 30.8076 ------------------------------------- Still waiting for a re-entry point.

To: craig crawford who wrote (18564)	7/1/1998 9:29:00 PM
From: joe	Read Replies (2) \| Respond to of 45548

>>What's all this talk about modem sales? Who cares about modem sales?<< The analyst care. They know that for the moment it's still a big part of 3Com. Modems are 30-40% of revenues for the moment. They were glad to see the transition products picking up well, but that alone can't support the company at the moment. They were also glad to see gross margins improve...so the company is looking more efficient and cutting costs. They seem to have confidence that this will continue. Modems have to prop up the company to some degree until the top line products are selling at higher levels. Analyst are worried that sales will be flat for a while longer - due to "typical summer slowness". (I tend to think their lowballing estimates...both 3Com and analysts) Also, even though modems are low profit, USRX made a lot of $$ on it and $$ can be made if 3Com has major control of market share and lots of people are buying. BUT, of course this is NOT THEIR FUTURE. Analyst are also worried about modems because they think xDSL and Cable Modems will supersede 56K Modems before they get a chance to kick in. >>modems that sit on store shelves<< Lots get sold with OEM contracts...probably the majority. >>Let's get back to the Palm Pilot or Gigabit Ethernet or something.<< You mean the thread? Or the company? These things are doing GREAT. In the long run, they may end up saving 3Com's butt if they can't produce profits from present products. I'm sure 3Com is focused on these pretty well and so are the analysts. Everybody's just waiting for these things to gain Mass Momentum. I'd like to see more 3Com profits before the Palm Pilot gets big. If 3Com gets some major modem contract/sales going, the rest will take care of itself.