3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

-23.5%

Nov 7 11:47 AM EST

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To: richard w allgaier who wrote (45134)	1/25/2001 12:52:47 PM
From: David E. Taylor	Read Replies (1) of 45548

Rick: My take exactly. Since the earnings warning on 12/4 last year, we've turned over around 360 million shares, about 230 million around $10, and the other 130 million between $8 and $10. Tax loss selling is long gone (I took part in that), and anyone who has bought in since 12/4 has a cost basis in that $8-10 range, around 2/3rds of them around $10. So I don't see many sellers at this level, and profit taking will probably not start until we get up to around $14-$15, when we'll run into some slushy going. To get past $15 towards $20 will not happen until the March earnings report or some prior news from 3Com that business is picking up. Looks good to me for a trade to the $14-$15 level, so I bought a few shares and some Feb $10 calls yesterday., The calls are still pretty cheap - only $0.50 premium. Some bad 3Com specific news or the market heading south suddenly would change this rosy scenario of course, and would dictate dumping the options but probably hanging onto the stock. JMO. David T.

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