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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: chenys who wrote (19389)7/20/1998 1:14:00 AM
From: Mang Cheng  Read Replies (2) of 45548
 
<My target price is $300 IN THREE YEARS,..... Call be crazy or call it wishful thinking, >

q y, you are most probably crazy ! <G> For coms to be $300, we need the following scenerio:

1. Revenue of 12 billion (easy with buyout),

2. Net profit margin of 15 % = 1.8 billion profit (not too easy)

3. that gives a per share earning of $5.

4. a very bullish outlook and extremely overbought to give coms a p/e of 60, with a PSR of 9 which is cheaper than csco right now (happens all the time).

5. then we'll have a $300 coms

coms can becomes a 12 billion company very easily with some buyouts. If it buys out NN and LSI, it will be an instant 9 billion company - bigger than cisco !

Mang

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