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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-13.3%Nov 7 11:47 AM EST
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To: beckya who wrote (44933)11/29/2000 10:26:20 PM
From: Mehrdad Arya  Read Replies (2) of 45548
 
I can not believe how a company with 3Com's metrics could be selling at $12.5.

A Book Value of $11.86
A Price to Sales multiple of 1.09 (ttm) 1.18 (forcasted)
A Debt/Equity ratio of ZERO
A Cash position of $2.7 Billion
A Growth rate of 20%+

The aforementioned multiples don't even manifest the company's true assets, that includes their investments, patents and real estate.

An important multiple used by many financial wizards is to buy companies that trade at a P/E multiple that is half the a company's projected growth rate. THIS IS CONFIRMED

Another valuable metrics pertains to the company's liquidity. Here again the company passes with shining armor.

The company has manifested that they repurchased 33 million shares for a total commitment of $508 million. I take this to be an extremely bullish disposition by insiders as to the company's future. It should also be noted that the company has set aside another $500 million for repurchasing of the company stock. Extremely Bullish!!!!!

Now here is the challenge! Can anyone manifest any company in the USA with similar multiples, metrics and financials?

This is why 56% of the outstanding shares of 3Com are owned by institutions. They know value when they see it.
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