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

To: clutterer who wrote (21878)	9/22/1998 3:31:00 PM
From: Pierre Aydin	Respond to of 45548

I hope this is not a repeat of last qtr. when they pumped the stock to 38 and then right after earnings it crashed. Be careful people and good luck, I sold little too early around 30-1/2 but hey I am hapy with 25% return. Pierre

To: clutterer who wrote (21878)	9/22/1998 3:32:00 PM
From: Moonray	Respond to of 45548

The Story (thanx): 3Com expected to beat Street CBS MarketWatch - Last Update: 2:05 PM ET Sep 22, 1998 PC card, modem business strong, analysts say SANTA CLARA, Calif. (CBS.MW) -- Shares of 3Com Corp. extended their gains for the fourth consecutive session Tuesday, as anticipation of a strong earnings report boosted the broader data networking group. 3Com (COMS) will report first-quarter results after the bell, and analysts surveyed by First Call expect a profit of 20 cents a share, compared with 17 cents a share in the fourth quarter and a loss of 43 cents in the first quarter of fiscal 1998. Wall Street now expects the data networking equipment maker to meet or beat forecasts, as improving company and industry trends accelerated business during the quarter. 3Com shares were up 11/16 to 32 3/4 early Tuesday afternoon, while the broader Amex Networking Index was up 1 percent. Into the second half "August is typically 3Com's toughest quarter as business slows in Europe for the summer, but it's poised to accelerate earnings growth as we enter the seasonally strong second half of the year," said Christin Armacost, an analyst for Everen Securities. 3Com has made significant progress in getting its business back on track after several disappointing quarters, analysts said. Armacost raised her recommendation to "buy" after the May quarter, citing an end to the company's prolonged transition period following the acquisition of U.S. Robotics. She currently has a six-month price target of $35 and a six- to 18-month target of $41, but she anticipates raising those numbers. Analysts also attribute rosier outlooks to improving external trends. The company is especially well-positioned to benefit as Internet service providers upgrade to support higher-speed Internet access connections. 3Com holds a 50 percent share of the modem market. Acceleration in the personal-computer market has also provided momentum for 3Com's business. According to Armacost, strong back-to-school and Christmas sales will generate stronger adapter card sales, which represent 20 percent of the company's revenue. SG Cowen analyst Chris Stix expects 3Com to meet or beat his estimate of 21 cents a share based on strength in its low-end systems products, adapter cards and modems. "[3Com] is extremely focused on growing its business in the small-medium enterprise market and we expect this business to be strong going forward," Stix wrote in a research note. Looking toward November To be sure, the company still faces questions about its ability to increase revenue in the August quarter, but at least one analyst said the company's expectations for the following quarter are even more important. "The key surrounding 3Com's stock," Warburg Dillon Read analyst Scott Heritage said, "is not what the earnings are for the August quarter, as long as it is within a penny or two, but rather the [3Com's outlook] for the November quarter." Peter Liu, a networking analyst for Needham & Co., was less optimistic about the company's first-quarter results, but he expects improvement in the second quarter. Liu projects a profit of 18 cents for the quarter, with a 15 percent decline in year-over-year revenue. "There are still worries about Asia," Liu said. "Asia sales are expected to fall to 10 percent from 17 percent last year. People are also wondering if management can start to execute on its numbers. There's a credibility issue." Elsewhere in the data networking group, shares of Cisco Systems Inc. (CSCO) rose 7/16 to 62 11/16, while Bay Networks Inc. (BAY) rose 1 3/8 to 30 and Fore Systems (FORE) rose 9/16 to 21 9/16. Cabletron Systems Inc. (CS) fell 7/8 to 10 1/8 on the heels of a lackluster earnings report. o~~~ O