KyrosL, it is quite a delight to know that you are still hanging around in these chaotic times. The following are just my humble opinions regarding the stock market and 3Com.
The collapse of the Dot Coms and High Fliers such as Cisco, SunW, Orcl and the smaller companies that supported their logistics was blatantly obvious. It should have happened two years earlier but with a lax Treasury and Fed. Reserve and the new Robber Barrons on Wall Street spinning their hyperbole the momentum lingered longer than most economists' econometric models could have forecast. Nevertheless, the truth always prevails, meaning that only those companies with fundamentals will have the capacity to survive. This is were 3Com stands out head and shoulders above the rest, with platinum fundamentals. Great Emerging market technologies, a cornucopia of patents, Zero debt and plenty of cash and non operating income. Couple this with their recent timely down sizing and greater focus in areas where they categorically have leadership, over the likes of Cisco et al, and what you have is a potential 10 Bagger.
However, we should note that the turn around will be slower than most had expected but it is certain to happen. If you think the likes of Cisco and SunW etc will EVER return their past stratospheric levels, you are in for a rude awakening. It will never happen, they never had the fundamentals and still don't have the fundamentals to justify their current prices.
Just be patient, 3Com is grossly undervalued by any standard. All it needs to do is to reverse its' trend of losing money, which it purports it will do this coming year. This is predicated without a major recovery in the telecom industry. |
