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

To: Doug who wrote (29014)	3/17/1999 8:54:00 PM
From: robz	Respond to of 45548

3Com's revenues basically breakdown: 10% Palm, 45% NIC's & Modems and other client access products, 45% swithes,hubs & other enterprise related products to the corporate market. Unfortunately for 3Com, there was a fall out in Palm for 2 reasons: after Christmas is a very slow period, second people were waiting to purchase new release of the PalmIIIx and PalmV. Analog modem prices went down due to the commodity business it has become (it is a dying business). NIC prices went down at a greater than expected clip due to the fact that 3Com is getting the market ready for the release of the "intelligent" NIC's. Enterprise market was weak due to y2k issues and the result was price cutting to hold market share. Finally, the company could have executed better. The company recently hired someone who sole focus is to nail down execution issues and to facilitate the process by instituting a web based management solution. The stock is close to its bottom. In the near future it will not be the best performer but I will stick to my guns that the stock will be back to 50 by this time next year.