Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: opalapril who wrote (28398)	3/2/1999 3:00:00 PM
From: Doug	Read Replies (1) \| Respond to of 45548

Opalapril: In the Networking Industry, there is the high end services and products that cater esentially to the Carrier class,NSP's etc. At the low end we have the last mile Technologies more oriented toward the Consumer. At the low end Margins are tight, competition very intense and product half lives very small. Eventually these products are only designed inhouse and outsourced for production to Asia etc. COMS is certainly not there as yet but is perceived to be on that route. In such an environment it is certanly possible to make a lot of money. However one needs to reduce inventory,workers,plant etc and rely on JIT mfg etc , Channel sales etc. Perhaps those closer to COMS may determine if COMS can be skinned down to generate better margins.

To: opalapril who wrote (28398)	3/2/1999 3:15:00 PM
From: E.J. Neitz Jr	Read Replies (1) \| Respond to of 45548

Opalapril. Todays price slide is due to rumors that COMS will not meet qtr estimates. This may indeed happen due to product transitions with their "palm" product. Any downdraft will probably be short-lived, although painful for those that own the stock. The company has huge potential, especially in the area of wireless, that will just explode over the next few years. The stock periodically sells off like this, and adding to a position at lower levels makes sense--at least for me. Off topic, do you still own XOMA?