Hi, Sully -
Good, only good stuff for FORE. It is a reality, not a dream.
Briefing.com Updated for 25-Jun-98
Brief: 3Com posted earnings in line with, to one cent above, street estimates, in reporting a Q4 gain of $0.18...
Company noted that its inventory problems were over and that its board authorized the repurchase of up to 10 mln shares... CEO and eternal optimist Benhamou believes company has "turned the corner." Maybe, but they're still in a pretty bad neighborhood... Though systems sales rose by nearly 8% v. the year ago period, sales in its remote-access
business fell 6% year-over-year... Total sales were flat... Gross margins for the quarter fell by more than 2%... Costs were down, particularly in the area of sales and marketing, but company planning major ad campaign in upcoming quarters... Company needs to prove that it can grow top line and improve margins or else it will discover that the corner it turned leads to a dead-end... That said, market was prepared to be disappointed by the headline figure...
Given as expected number, look for a relief rally to lift the stock back to the 30-33 area over the near-term... Gains should be used as exit point for all but the most patient, risk tolerant, aggressive growth investors...
FORE shot ahead to a new high amid takeover speculation.
PS. Happy Trading, Igor |
