To All:
From Barfing Bags.com. The stuff they spew out
gets worse and worse. By the end of this month, we shall
see what they have to say.
3COM CORPORATION (COMS) 30 1/16 +2 5/8. Nothing to report here except rumors. Networking company 3Com
Corp. (COMS) stock jumped from under 25 on Thursday to over 28 on rumors that Intel (INTC) was looking to acquire the
company. Those rumors are back today and driving the stock higher again. Frankly, COMS could stand to be taken over.
Profit growth for COMS has shown a bit of life lately, but can generally be described as stagnant. In the most recent quarter
(May) COMS earned $0.17 per share. That is significantly less than the $0.32 per share they earned in the same quarter in
1995 - three years earlier when they were a high flyer. Revenues in the most recent quarter were basically flat from the prior
year. So, while optimists can look to new profits, better management, etc., shareholders may also look favorably on any offer
for the company. The stock, which hit a 52-week high of 56 3/4 in October, tanked late last year and has drifted slightly lower
since. In recent weeks, it has been on a roller coaster ride with occasional bouts of optimism being beaten back with doses of
reality. Today, the question is simply: will they get bought out and at what price? If not, will the stock drop back to $25?
Definitely a "Story Stock" today, but solely as a result of takeover rumors. |
