Bux, I think some one should remind Gary of the things that have taken place in the latter two quarters.
1. Palm has unequivocally defeated Windows CE, by a TKO
2. Nokia, the largest cell phone manufacturer, has agreed to licensed the PalmOS
3. Sony, the most respected consumer electronics manufacturer, has licensed the PalmOS
4. 3Com has done more than hold ground in the NIC area
5. 3Com won 5 awards at Comdex
6. The Palm booth at Comdex was the most congested area of the entire convention and this is indicative of what will prevail in the coming months, in matters concerning the Palm and its' IPO.
7. The company has begun to shed excess capacity in manufacturing. Inventory levels are drastically down.
8. Investments in JNPR,EXTR,AETH and OmniSky have added $1.5 Billion to the companies equity position, just in the last two quarters.
9. Operational expenses have been drastically reduced
10. The company's sales in Asia have improved markedly.
11. The company's estimations regarding the latter two quarters was overly conservative. As can be seen with earnings beating the consensus estimates by 38%. If it were not for an upward revision of estimates they would easily have beaten estimates by at least 50% this 2nd. quarter. As I have said the company will beat earnings estimates by about 20% this quarter. This will be cogent enough to compel the pessimists to upgrade the stock.
12. 3Com's position in the Emerging markets appears to be getting stronger. They are continuing to register more patents in Wireless, Broadband and VoIP etc.
13. Currently they have taken a lead in the deployment of wireless CDMA infrastructure, as manifested with Sprint.
14. Signed up two RBOC for Broadband connectivity.
15. Continuing to capture market share in Broadband
16. Alliance with MSFT in Home Networking
17. The company has bought over 30 Million share at an average price of $23.5, this translates into a profit of approx. $600 Million.
I unfortunately don't have enough time to continue my list. Be my guest and continue the list of merits or demerits (if you can find any, other than hyperbole).
;) |
