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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Nov 7 11:47 AM EST

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To: FUZFO who wrote (21149)9/2/1998 9:50:00 PM
From: joe  Read Replies (1) of 45548
 


Fuzfo,

>>increase = $.64/1.29 = 49% earnings growth Y/Y<<

I'm not sure if the above is right.

$1.29(99 earnings) - .72(98 earnings) = .57

.57/.72 == 79% increase from '98 to '99 earnings.

Do the same for 2000, assuming that '00 earnings are 1.95 (First
Calls) and you get a 51% growth rate.

Still, COMS "expected" growth rate when the company is
normal is around 25%/year. Adjusted
for super low interest rates makes 35 a reasonable P/E
estimate (providing the company is executing)

Then, where we will get some good rises is when COMS proves
that it's getting stronger and the earnings estimates will
change. That $1.95 estimate for '00 should be $3 - 4 easy
if COMS is doing it's job. It's like Moons said, last summer
we was all expecting $2.00 earnings for this year.

But hey, don't get all worked up counting your money yet.

COMS has to execute. If not, it will be time to look
for other stocks.

joe
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