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

To: Harold S. Kirby who wrote (27777)	2/7/1999 11:43:00 PM
From: Mang Cheng	Read Replies (3) \| Respond to of 45548

The following is my response to a private message with regard to the current situation of coms. May as well post it here for other to see : ******************************************************************** Dear x, I shared your frustration about what happened to coms this last week. The intensity of the drop really caught me by surprise too since the chart didn't really indicate anything like this was going to happen. I think the Street had already discounted for a profit warning from coms regardless of whether coms is going to issue one or not. If coms actually come out to issue a few pennies profit shortfall, I think coms will actually go up from there. The difficult part now is we have four whole weeks of uncertainty until we can be sure if there will actually be a profit warning or not. Shorts and bears now are really feeding on this uncertainty and screwed us up big time. If you want to play a second tier stock like coms, it's the type of volatility you have to get used to. The same thing happened last June when analysts as usual predicted inventory problems for coms and coms felt in panic. coms went on in its June report to report 17 cents which was above expectation. So there is still a distinct possibility that coms will not issue a profit warning, in which case coms should go back to $45 very quickly around the second or third week of March. If there is indeed a profit warning, we may go down 10% more than start to rebound. Of course I don't know how much the high-tech sector is going to pull-back - also important factor affecting coms price. Mang