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

To: Moonray who wrote (27647)	2/4/1999 10:24:00 PM
From: Tom Gebing	Respond to of 45548

CREDIT SUISSE FIRST BOSTON CORPORATION FEBRUARY 4, 1999 FIRST EDITION COMPANY COMMENT 3Com Corporation (COMS, USD $38.3, STRONG BUY)Target (12 Months): $55 Four issues have impacted the stock: Intel's adapter product announcement, fallout from a distributor's pre-announcement, comments from Cisco on market dynamics, and the back-end loaded nature of quarter. Of all these were are most concerned with visibility and less concerned with the recent Intel, (INTC, $138.59, BUY) Cisco (CSCO, $111.12, STRONG BUY) and Tech Data (TECD, $22.06, NR) issues. Although not new, the back-end loading of FQ3 - over 50% of business remains to be done in the month of February - creates significant, albeit manageable, risk. We believe that as visibility into May quarter increases, the stock should perform better as investors look through the seasonally tough FQ3. While we share some near term visibility concerns, we remain enthusiastic about 3Com's long term prospects; we still some near term risk in the stock and will become more aggressive buyers as the visibility improves. Cisco (CSCO,$111 1/8,Strong Buy) Intel (INTC,$138 11/16,Buy)* Tech Data (TECD,$22 1/16,Not Rated) Annual EPS 5/00E $2.3 05/99E 1.40

To: Moonray who wrote (27647)	2/4/1999 10:41:00 PM
From: joe	Read Replies (2) \| Respond to of 45548

>>All 3COM has to say to restore confidence is: "No, we don't see that we are losing business to Cisco". Any thoughts anybody?<< Yes, moonray, I thought about this later, and realized that would be a good thing for them to come out and say. It would seem like something they could say without knowing the exact revenue numbers for the quarter. I don't know, maybe they do need some more input from sales revenues to come in? Maybe they're afraid of saying the wrong thing? I don't know. I did notice today that they are giving some type of sales break on the Palm...possibly a way of getting some extra sales in before the end of the quarter? Maybe that was some type of indirect message? joe

To: Moonray who wrote (27647)	2/4/1999 11:11:00 PM
From: Bruce L	Read Replies (1) \| Respond to of 45548

<All 3COM has to say to restore confidence is (to say): "No, we don't see that we are losing business to Cisco."> Moonray: The problem with this is that there are probably hundreds of products from both COMS and CSCO that to some extent compete with each other. This is especially true since CSCO has decided to target the consumer and small enterprise markets. At any given time both companies have some products that are gaining ( and losing) market share. Of course they could say something general to the effect that OVERALL they are not losing market share. Bruce