A hot computer technology cools; the shares of leading network companies have fallen to new lows. But niche players may be the safest bets

Article Abstract:

Although they have not been successful across the board, computer network companies can create good investment opportunities. Computer network companies create the hardware and software used to link up one computer with another, allowing intercommunication. The two leading network companies, 3Com Corp and Novell Inc, are warning of low quarterly earnings. Hardware manufacturer 3Com may even be reporting its first loss since 1984. While this can be seen as bad news for investors, potential investors willing to take a chance could get stock at bargain prices. Analysts say that both companies are basically sound, but are in a slump. Others suggest investing in niche network companies, such as Vitalink Communications Corp, which specializes in linking different networks. Network General Corp, a network maintenance and repair company, is also seen as a wise investment choice.

Stock-exchange, Stock exchanges, Investment analysis, Securities analysis, Novell Inc., Outlook, Network Management Software, Vitalink Communications Corp., Network General Corp.

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Finding value in a software slowdown

Article Abstract:

There are still some software companies that offer good values on the stock market despite the decline in stock prices that some companies have experienced. Some software companies are still growing quickly, and are either at full value and a good long-term investment, or are small and undervalued. Large companies with considerable positive stock activity include Microsoft Corp, whose stock increased 50 points from spring to fall, 1989, and Oracle Systems Corp. Small companies that are considered a good value are Autodesk Inc at 39 and Aldus Corp at 15.5. Adobe Systems Inc is a company that is expected to turn around soon after a considerable decline from 30 to 17.625. Cadence Design System Inc, a manufacturer of electronic design automation software, is also a good buy at 20.25.

Microsoft Corp., Adobe Systems Inc., Autodesk Inc., Cadence Design Systems Inc., Stock markets, column, Industry Analysis, Stock Market, Aldus Corp.

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3Com moves to reassure investors

Article Abstract:

3Com Corp officials sought to discourage stock speculation by announcing that its 4th qtr 1993 earnings is estimated to be about 40 cents per share on sales of about $167 million, indicating an increase of 33 percent in sales and 100 percent in earnings per share from the same period in 1992. The announcement was intended to contain the steep plunge of $11.125, to $27.375, of the company's share prices in the week ended May 28, 1993. The plunge happened when 3Com officials indicated that the supply of its adaptor card had finally caught up with demand and that a number of distributors have cut orders as a result. The positive forecast for its 4th qtr performance allowed 3Com's stock to rise $1.375, to $26.50, on Jun 4, 1993.

Computer terminals, Computer peripherals industry, Forecasting, Stock, Financial Report

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