3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

0.0%

Nov 7 11:47 AM EST

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To: Mang Cheng who wrote (14354)	3/8/1998 3:41:00 PM
From: rupert1	Read Replies (1) of 45548

Hi Mang; I was surpised to see your comment about BAY. I don't think BAY or anybody has said that BAY is trying to back-load March. What has been said is that in the normal course of events in this seasonally soft quarter, the quarter is back-loaded. Some estimates are that 50% of sales come in March. The ML analyst opined this but then went on to reiterate an accumulate recommendation and to give an earnings estimate only 1 cent short of the consensus. The CFO mentioned the importance of March sales in the Goldman Sachs meeting last Wednesday. Its not a secret or a rumour. All this has been known for some time. House the CEO has gone out of his way to explain the nature of the seasonally soft factors (which also apply to 3COMS) especially in a major meeting with analysts about a month ago. This has been necessary to prevent analysts getting carried away with expectations of upward suprises this quarter. House and Bay and analysts have said that the June quarter will be very strong but that this quarter may follow the normal trend of not showing sequential growth - even though BAY is trying hard to reverse that historical trend. There are many ways of valuing a company - BAY is going through product transition and is gaining market share. What P/E is that worth? I think your comment was based on factually incorrect premises and I don't understand why you think BAY should visit the low 20's. Of course it might, especially if the general market corrects sharply, and so might COMS. Anything might happen, but let us have some rational framework. With reference to the other post on this thread that BAY is about to pre-announce, those of us on the BAY thread would really like to know the source of this opinion, or even the nature of the rumour to which it alludes. Victor

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