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

To: Wayners who wrote (24536)	11/16/1998 2:29:00 AM
From: joe	Respond to of 45548

Wayne, TA and FA combo could be the best way to go if somebody has enough patience and energy to wade through all this info. >>I've been thinking a bit about earnings reports and how to forecast whether a stock is going to sell off or not after the numbers come out.<< Interesting comments. I've thought the same, thing. The First Call estimates are not what individual institutions look for, but mostly their own Analyst. Thing is, sometimes the First Call estimate has an incredibly low standard deviation, so it's all the same in the end. >> Another way to look at it is if the company beats or meets every analysts estimate there is no sell off period.<< This is sort of wrong. First of all, COMS is not in the league where it's expected to do great like consistent performers. It still has to prove itself this quarter. Some negativity is built into the price. The most important thing is to see if Analysts will change their future earnings estimates. If Palm Pilot revs increase by a lot, and everyting else remains constant, the future earnings estimates have to go up. Will this cause a selloff? Not if it's not expected. If earnings are beat by a mile and future visibility is drastically changed then maybe a gap up. But, IMO, when future earnings estimates are revised upwards, price moves steadily, even if the revisions are signficant. joe