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

To: David Lawrence who wrote (27433)	2/3/1999 12:12:00 PM
From: Tom Gebing	Read Replies (2) \| Respond to of 45548

Now down 20% since yesterday on a analyst that thinks 3com may have some pricing pressure and drops his estimates by 2 cents...but maintains a buy..... Is this overdone or what ?

To: David Lawrence who wrote (27433)	2/3/1999 12:30:00 PM
From: Moonray	Respond to of 45548

3Com Falls Amid Concern It's Losing Corporate Business to Cisco Santa Clara, California, Feb. 3 (Bloomberg) -- Shares of 3Com Corp., the No. 2 network-equipment maker, fell as much as 12 percent amid concern that it may be losing corporate business to its biggest rival, Cisco Systems Inc. 3Com dropped 4 7/16 to 39 11/16 in late morning trading of 16.7 million, making it the most active U.S. stock. Earlier, the Santa Clara, California-based company fell to 38 5/8, its lowest since late November. Cisco said its sales to small and mid-sized businesses rose more than 30 percent in the fiscal second quarter, leading some analysts to conclude that the No. 1 networking company is taking share from 3Com. 3Com got about half of its $1.54 billion in sales from corporations in the quarter that ended in November. ''Cisco had growth in small and medium-sized businesses, which is 3Com's market,'' said Michael Duran, an analyst at Lazard Freres & Co. Adding to concern is the fact that 3Com gets the bulk of the rest of its revenue from modems and cards that link personal computer users to networks and the Internet, products where prices are falling. ''Prices in those businesses are at risk,'' said Martin Pyykkonen, an analyst at CIBC Oppenheimer, who rates 3Com hold. Paul Sagawa, a Sanford C. Bernstein & Co. analyst, said Cisco told analysts on a conference call yesterday that sales may slow in 1999 as companies wait to update their networks until they assess the impact of the Year 2000 computer bug. The bug, which prevents software from distinguishing between 1900 and 2000, may cause some older computers to crash on Jan. 1. ''3Com is guilty by association,'' said Sagawa, who rates 3Com stock ''outperform.'' Shares of Cisco fell 1 49/64 to 110 5/8. o~~~ O