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

To: mr.mark who wrote (29549)	4/7/1999 10:22:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 45548

COMS reminds me more of ASND in late 1998 than of CS today. Yes, they have executed poorly (and, more importantly, poorly guided or perhaps misguided the Street). Notwithstanding, COMS annual earnings this year will be above last, and the latest stumblings will only result in a FY 2000 number that is an increase over FY 1999 (which will be an increase over FY 1998). I guess what I'm saying is that the earnings trend is positive. As was ASND in late 1997, COMS is oversold, plain and simple. Weak hands being shaken, and all that. When I get assigned (my April 22 1/2 puts), I'm not selling. Gary Korn

To: mr.mark who wrote (29549)	4/8/1999 11:08:00 AM
From: Bruce L	Read Replies (2) \| Respond to of 45548

<please say why, iyo, it will be dramatic and, why must it turn? why not sideways?> There are two basic reasons: (l) momentum traders and (2) the quality of the stock (as I perceive it). First, the nature of stock trading has gradually changed in the last couple years: because of the acceptance of technical analysis and a growing short term trading mentalilty. Both large institutions and day traders won't commit to a stock until they perceive that it has bottomed. Of course when they do step in, it naturally follows that the effect will be dramatic. Second, someone recently said that "everyone loves COMS." There is a lot of truth to this statement. COMS in no way is a Cabletron or even BAY; it is the number 2 networker, it is profitable, almost everyone predicts it will only get more profitable, it has many outstanding products, it is debt-free and has > l$billion in cash, it has a near monopoly in modems and certain NIC cards, etc. As COMS has declined, just look at the interest on this thread. The bottom line is that many people and many institutions are waiting and watching. The best analogy I can think of is ASND. When COMS turns it will be dramatic. Maybe it is starting today. Bruce