3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00160

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Nov 21 9:30 AM EST

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To: blankmind who wrote (13866)	2/10/1998 3:11:00 PM
From: Christopher White	Read Replies (3) of 45548

blankmind, IMO, USRX with its aggressive accounting procedures is a convenient scapegoat for 3Com's management's delay in dealing with existing inventory problems resulting from acquisitions. In the last 3 1/2 years COMS has tripled its sales by acquiring 6 companies and merging with one. Though USRX did stuff the channel with x2 modems, I suspect some of that obsolete inventory could be left over from prior acquisitions and senior management had up until now, when the problem was no longer possible to ignore, hoped that through growth, this excess inventory would disappear. I agree with your views on the negative short term effect a COMS/NN merger would have on the companies stock prices - history does repeat itself IMO. However, I see this merger as inevitable for the longer term viability of both companies in this competitive marketplace. Looking further out, I think the next step would be an even closer cooperation, maybe even acquisition by Siemens of both COMS and NN. Siemens needs the the technology that COMS and NN have to compete for the business of the telecoms. Christopher

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