SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: The Phoenix who wrote (34876)10/6/1999 7:27:00 PM
From: KyrosL  Read Replies (1) of 45548
 
Gary, you are a funny man but sometimes you keep repeating some falsehoods that are not helping those that are reading the thread to get the facts about COMS. For example:

retail DSL modems = low margin business....when will COMS learn...it is disappointing that COMS still can't extricate themselve from immersing themselves into these low margin businesses...low margins will keep a cap on the stock price. IMO

As we discussed before in this thread, 3Com's Personal Connectivity sector, which includes modems and NICs, is the HIGHEST margin business in COMS, with profit margins over 14% (see 10-K page 57, one more time). It is a shrinking business to be sure, but it is NOT low margin. I thought we cleared that up a couple of weeks ago.

Now, DSL modems are not being made by too many people, and 3Com will be the only vendor as far as I know that will sell them in retail stores. My own estimation is that 3Com DSL modems will not only help reduce or reverse the shrinkage but will also have very good profit margins. After all, 3Com (and USR) has an excellent reputation in modems and sells them at a premium relative to competition. Now BA has more than 17 million customers. I expect a good percentage of them to convert to DSL. The implications for 3Com profits from this business are very good IMO.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News