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

To: Dolfan who wrote (30720)	5/8/1999 8:55:00 PM
From: Richard P. Roberts	Respond to of 45548

Full article from Briarpatch THANKS DOLFAN ! 3Com (NASDAQ: COMS) Individual holders of 3Com can relax a little; the cavalry has established their positions and are about to mount a charge. The Briar Patch thinks that at the $26 range 3Com has a 15% downside risk and a 75% upside potential. Since 1995 the stock has been on a roller coaster ride. In the last two years there have been two trips from the mid-twenties to the fifty range. Why has the Briar Patch committed approximately 5% of its portfolios to 3Com at $26.12? 1) The market cap of just over $9 billion is a large enough sandbox to attract some big players. 2) Revenue per share of $15.52 is high enough to attract value investors. 3) The chart has turned positive and has held above the 50 day moving average for the last two weeks. Since the April 23, 1999 volume explosion of 33 million shares, the stock has consolidated sideways instead of running right back down. That volume amounted to almost 10% of the shares outstanding. 4) Continuous rumors of takeovers add spice to the pot. 5) There is room for broker upgrades. According to Yahoo finance, 33 brokers have reports on the stock. Nine call it a strong buy, eight rate it a moderate buy, and 16 rate it a hold. 6) The long running problems of combining two large companies, US Robotics and 3Com have eased. Solving merger issues reduces the amount of corporate energy available to create new products. 7) The Palm Pilot has established itself as the dominant product in its growing field. Since there is ample coverage of this company, Briar Patch will not issue a full report. We will get on for the ride.