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

To: Moonray who wrote (28839)	3/8/1999 10:49:00 AM
From: W.F.Rakecky	Respond to of 45548

Oppenheim's Rothauge on Siemens' U.S. Data Expansion: Comment Frankfurt, March 8 (Bloomberg) -- Following are comments by Frank Rothauge, an analyst at Oppenheim Finanzanalyse in Frankfurt, on Siemens' purchase of Internet equipment makers Argon Networks Inc. and Castle Networks Inc. as part of a $1 billion investment to expand its data-networking business. The company will fold the purchases into a newly created unit for its data networking business. He rates the stock ''accumulate.'' ''What's positive about this is that even though revenues of the unit will be originally small at about $200 million annually, over the long term it's a building block to show customers they can deliver IP solutions.'' ''No one doubts Siemens in voice equipment, but their believability in IP is not there yet and through the purchases and this new unit they'll be able to build it up.'' In Germany, Siemens has about 60 percent of the market for voice, which is certainly impressive, but in IP they don't even rate. This gives them a solid footing in both so they can deliver integrated voice and data networks to customers. ''One has to buy know-how so that you can have the products customers are asking for.'' On why the shares fell: ''Perhaps some had expectations that there would be an additional story involving 3Com because of recent press reports. As a result, the expectations generated were higher than what they did, but the drop is a one-day story.