I've followed your interesting exchanges with Price Monger for some time now. Like you, I have lots of respect for EB. I think 3Com is lucky to have him as CEO. I am an ex 3Comer, by the way, and still working in the networking industry. In following what happened to 3Com between Dec '96 and today, I think the biggest blunder that EB made is to pronounce in late January that the networking sector as a whole is slowing down. You know what happened to the messenger of bad news, many times, right. He should have approached Noel Lindsay, the networking analyst/guru; convince him and let him break out the news. In early 90, an east coast analyst asked, toward the end of 4th quarter, how 3Com's doing. 3Com refused to talk to him. After his downgrade, 3Com stock dived from $40 to $22 in 2 days.Ironically the quarter result was very good.
Noel Lindsay, by himself, didn't bring 3Com stock down from 70 to 40 level. But IMO he was a major external factor that should have been handled better.
Simonds. |
