Mehrdad, you're the same... never wavering. I'll give you that. Perhaps if you would listen a little you might learn something for a change.
1. Palm has unequivocally defeated Windows CE, by a TKO
PALM - not COMS
2. Nokia, the largest cell phone manufacturer, has agreed to licensed the PalmOS
PALM - not COMS
3. Sony, the most respected consumer electronics manufacturer, has licensed the PalmOS
PALM - not COMS. No doubt - PALM is a good IPO - I'm looking forward to it.
4. 3Com has done more than hold ground in the NIC area
We'll see,.. but big deal.
5. 3Com won 5 awards at Comdex
Oh, that'll create some value and get some business. These awards are window dressing - they're meaningless. I've been in the business for years and these awards are a marketing tool and they really mean very little to the customers.
<i? 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.
PALM - not COMS
7. The company has begun to shed excess capacity in manufacturing. Inventory levels are drastically down.
Good.....!,
8. Investments in JNPR,EXTR,AETH and OmniSky have added $1.5 Billion to the companies equity position, just in the last two quarters.
No operating earnings. Still good, but it means nothing for COMS' underlying networking business.
9. Operational expenses have been drastically reduced
Thankfully, that's the only way they made their numbers last quarter. Hey, with flat revenues they'd better keep cutting expenses.
10. The company's sales in Asia have improved markedly.
Yes, it is for the entire industry from what I'm hearing. Will COMS keep pace? They have a history of not growing at market rates.
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.
Go back a look at revenues and margins. They beat due to cost cutting. We've been through this before. The fact is that they're only growth business was PALM which will be gone. They continue to lose market share in COMS businesses. COMS success is investments, cost cutting and PALM - everything but generating market share growth on COMS products.
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.
This is the sleeper. We don't really know what's going on here yet but if you're right and COMS is winning business then we should see it in revenue growth of core businesses. Should this occur I'll hold my COMS shares.
13. Currently they have taken a lead in the deployment of wireless CDMA infrastructure, as manifested with Sprint.
They have the lead with the CDMA Gateway - a very small portion of the CDMA infrastructure. It is far smaller than you would have others believe. Other vendors who really own the infrastructure can and will squeeze COMS out of this very narrow space. Just a matter of time.
14. Signed up two RBOC for Broadband connectivity.
Are you talking about the cable modem reselling deals. Get real. That's widgets.
15. Continuing to capture market share in Broadband
On modems. Nothing else. This is low margin and highly competitive and they will not turn this company around selling modems and NIC's regardless if they are broadband or V.90.
16. Alliance with MSFT in Home Networking
Microsoft and everyone else too. MSFT has deals with CSCO, NT, LU and everyone else. Take a look - they're whores.
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.
Not COMS revenue generating related. Nice to see them prop the stock up for us though! :-)
Ding! You're turn :-)
OG |
