Gary, $35 is my entry point on 3Com, I am patiently waiting and surmise that it won't take much longer to execute my order. With regard to Msft, I can only say that anyone who thinks Judge Jacksons ruling will be affirmed in the Appellate courts is out of his head. Relatively speaking Msft is a value play, $21+ billion in cash, $23+ billion in liquid assets, estimated future growth at 20% would give the company a PE of 32, 88% gross margins, 40% after tax net margins and as we all know the most ubiquitous name in technology.
Back to 3Com
My calculus assumes Palm at $16 x 1.5 = $24. At this price Palm would have a market cap. of approx. $9 billion.
With Palm's $1 billion in cash and its' leadership in the PDA market I think $16 is a fair market value in both absolute and relative terms.
3Com's cash sans Palm $9 a share
3Com's investments $3-$5 share
3Com's business $0000000.00
3Com's patents $0000000.00
3Com's divestitures $000000000.00
Predicated on the aforementioned parameters I feel it would be safe to enter 3Com at $36 or lower. This is all based on the market conditions not worsening any further.
It would be nice if you would also show my posts predicting the fall of QCOM, CSCO, xyz.com, etc., or did you forget.
;) |
