3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00170

0.0%

Feb 6 9:30 AM EST

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To: Arnold Layne who wrote (34004)	9/14/1999 12:41:00 PM
From: Mehrdad Arya	Read Replies (1) of 45548

Two upgrades: Needham - Strong Buy from Buy Prudential - Buy from Hold One downgrade: JP Morgan - Buy to Hold A line is being drawn across the sand as to COMS position and approach toward increasing share holder value. It appears the general consensus is positive towards the BOD action concerning the spin-off. This is how an Asset Stripper like Sir James Goldsmith would extrapolate 3Com before he moved in to make the kill. 1> Palm to command a market capitalization of $8-$10 Billion 2> Interests in Juniper Comm., Extreme Networks $1 Billion 3> Cash - $1.7 Billion and growing 4> Intellectual property (228 patents) $?, but substantial 5> Analog Modems and NIC's losing market share, not anywhere as fast as some pessimist or Bears would like you to think. The masses of the World have a long way to go before they evolve into Broadband, so I see Analog modems staying around for a long time. The gross margins (47%)from this sector will continue to fatten the pot for COMS while they position themselves for the growth in Broadband and Wireless communications. This vantage point is something most companies would covet. 6> Debt Free 7> Enterprise data networking equipment, particularly its Ethernet or LAN switches, IP routers and core builder line products. $10 Billion (possible LU acquisition) 8> Wireless and Broadband. $10 Billion Current market capitalization $10 Billion Potential after the company has been stripped and sold off would be anywhere between $30-$40 Billion. This translates into a stock price of $85-$113 per share value. Let us be conservative and give my estimations a margin of error of 50% and the range changes to approximately $43-$57. Now can you see what will happen in the coming months. Management has made the acquisition game much easier for any potential company that might wish to plunge in and buy any sector of COMS.

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