One mans' opinion from the AOL board......
Subject: My worst fears
Date: Fri, 13 August 1999 07:28 PM EDT
From: JDS 3 COM
Message-id: <19990813192854.13276.00000973@ng-cd1.aol.com>
My worst fears about 3 com may come true. I along with Fraser always felt 3 com would be a 100 plus stock in 12 to 18 months. But that might never happen. The reason is this, their will be a mad rush of corporate mergers to beat new accounting rules. And 3 com is a siting duck with their stock price so low. Bay network 12 billion, assend 24 billion, little fore system, not even a player 5 billion. And here we have 3 com,
revenue 5 times bay, 4 times assend, 8 times fore system, Selling for market value of just 8 billion, with at least 2 times the cash assend every had. And 4 times the cash bay or fore system had. As a matter of fact bay and fore system had long term debt in which 3 com has none..So if we think 3 com is a steal at this price. What do you think the large companys that paid 24 billion for assend 12 billion for bay must think.They have about 4 months
to make a move, As aI read in a post here, its true Eric B has no choice, If the stock stays this low it will be a hostile bid and he will be out of a job. If Eric B can get the stock above 32 very soon it could be a friendly bid, which means Eric B would keep his job, and run the 3 com division. I would perfer none of the above, But this stock would have to run up for this not to happen. A hostile bid would start at 40 dollars and the winner would
pay about 50 dollars.. In a friendly bid, about 60 dollars. Would I be happy with the buy out, I am not crazy anytime you make money in the stock market your happy. But without a buyout this stock will be over 60 with plenty to spare in 12 months. Jack
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