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

To: William Wang who wrote (20115)	8/3/1998 10:25:00 PM
From: The BayWatcher	Read Replies (2) \| Respond to of 45548

COMS has lost momentum. COMS needs to rebuild its base. COMS has lost investor confidence. COMS modems sales slowed due to delay in v.90 standard. COMS needs new management. COMS is a skunk. COMS is a dog. Silly me, but doesn't the price reflect all this nonsense? Isn't COMS still the #2 networking company on planet earth? Isn't USRX synonomous to modems the way Clorox is to bleach? Isn't 3COM one of the best known brand names around? Best of all, after the CEO said they have turned the corner and virtually every brokerage house has issued positive comments, isn't this the time to be buying instead of selling? I don't like the decline any more than anyone else, but I see many more reasons to buy than to sell at 24.

To: William Wang who wrote (20115)	8/4/1998 12:52:00 AM
From: Will Hou	Read Replies (1) \| Respond to of 45548

Wang, It's very courageous of you to cut loss early and get out quickly. That requires discipline and guts. For that, you've got my thumb-up! :) However, I still pretty much holding my view on COMS and regard 23 as a major support. If I may repeat what I said few days ago, Naz 1850 still critical along with COMS 23 (remeber that triangle?). Something interesting going on here, that could potentially influence trading on COMS big time in short term: There are couple of factors that could bring market down, breaking 1850 and heading for further corrections. One being continuous weakness in Japan and Asia. Yen's passing 150 to the dollar, which could put severe pressure on Chinese and HK currency. If they devaluate or even hint to do so, we will most likely see all major support broken and market heading into "real" correction, being Dow 6000s or Naz whatever. Another is the slight possibility of impeachment of Clinton. AOL and CSCO will report and their results plus forward-looking statements could put lots traders on edge. That said, let's see what could be the good news. Well, obviously, COMS is to most people, dead. Can a dead one be "deader"? :) Less likely. So, some fund managers might rotate money into it, to enjoy possible upside and avoid severe downside. They will be too dumb not to do that. The reason? Besides deadbeat theory, if you take a quick look around networking sector, which enjoys 20 to 30% growth LT, most being traded at a PE 20+ next year's earnings. We don't have to look at LU or CSCO, which trades at 42 forward PE, even the rest are least in their 20s, like ASND (32), FORE (28), NT (24) and XYLN (23). Where's the COMS? 12. What does that mean? To me, at least, if that current price of COMS has factored in a 50% reduction in forward earnings, or 50% discount to the market if you can trust Eric (sorry, can't help it) and projected earnings. Another (possible) piece of good news could be that CSCO come out with good numbers and paint a rosy picture for all networkers. It is possible, considering the fast evolution of networking and newer standards being implemented. That could put a major brake on COMS. I didn't see any upgrade news, but I would think they are rather dumb to do it now. It'll be much wiser to do it when the stock hit major support, IMO. All said, I am still watching COMS closely without any positions and, I am still slightly bullish on it. I really hesitate to try to catch the falling knife here (as your courageous move has shown us LOL no offense), but rather like to ride on its way up. For short term play, those strangles/straddles with calls still look attractive. What do you think?