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

To: john dodson who wrote (18761)	7/7/1998 5:13:00 PM
From: hitesh puri	Read Replies (2) \| Respond to of 45548

>> Tiger by the tail. We are not asking him to be Tarzan just asking the analysis. Well now that I am out of Yahoo and Amazon :-) Come on guys, you really did not think I was going to abandon our favourite dog, did ya ? Well, I did let go of a little a week ago at 31.5 and went into ALTR and XLNX which I felt had better potential than COMS and I dont know why but they sure displayed it today. Here is the gyst of all the analyst reports I read after the June 30th analyst meeting. Thought you guys who are still holding deserve to know : 1) Everyone agreed that 3Com has turned around from the financial and inventory mess due to USR. 2) 3Com openly says that they wanna dominate the carrier edge and not the backbone or core. Reasoning is the voice/data merge will require major upgrades (dollar wise) at the edge than the core. Reasoning sounds great but some anal-cysts not convinced as they say its still low margin (but they forget the high volume) 3) Partnerships with Simens, MSFT etc will start bearing fruit in revenues from FQ2 onwards. 4) So basically FQ1 is crappy (hence the low interest in the stock) and also due to the seasonal slow period which falls plum into FQ1. 5) Aggressive cost cutting will overcome pricing pressures on client access side. 6) CB9000 is shipping with cell based support. Strong demand for this and CB3500 L3 switches. 7) V90 modems to pick up along with ISP upgrades. (I can vouch for the reliable improved throughput and also try to educate many on the benefits of the 3Com V90 modem). 8) Total Control Sales uptick was a surprise and expect port pricing to be stable. 9) OEM wins for NICS with HP and others significant. 10) Policy based networks is a big thing and 3Com products support it thoroughly. Something whose benefit is not very apparent now. 11) Share buy back was positive and that makes high 20's a strong support area. So basically we have seen the worst and I would buy aggressively at between 27 and 28 for a short term trade (1-2 months). TA experts have also stated that and I concur. And another observation, most of the blocks I have seen trading in real-time have been buys whereas small shares are selling. Hopefully the smart money is living up to its name. Have fun and remember to feed only the best to our dog. No Purina Chow etc., only cakes and cookies. -hitesh