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

To: Crzy Joe who wrote (18874)	7/8/1998 9:49:00 PM
From: joe	Respond to of 45548

>>I think it will take a few consecutive solid earnings before COMS will be removed off WS blacklist.<< I think the market will tell us in a few more trading days. If we keep going up like today, then WS will be more confortable with COMS. Also, the way WS sees COMS is like this after this last earnings report (trying to keep it very simple). PRO: they were well impressed by the turnaround (they didn't think it would happe), future products selling better than expected, expenses cut, and obviously will be cut more, no asia exposure, it looks like better communication with WS with this 10m share buyback (hopefully will control volatity and allow fund managers to go in). Fund managers like the 'security' of low expectations. CON: sales may not grow because of summer time slowness, and modem startup is time consuming. WS is afraid of slow sales growth. RESULT: looks like WS reduced expectations (estimates) so that the CON can be comfortable worked out. making numbers one more quarter even if sales are slow will be adequate because it's out in the open, and won't be a surprise, and it's typical cyclicality for sales history (personally I think sales will be stronger than predicted) Like 'blank' said: it's starting to look like COMS management is managing expectations better. That's the way to get along with WS. Hopefully, we'll get buyers in soon (maybe their all waiting to see if earnings in general are OK, or if the US economy is going into a recession...a possibility if EASIA makes things worse...) joe