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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

+1,200.1%

Nov 7 11:47 AM EST

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To: Jon K. who wrote (26314)	12/22/1998 2:43:00 PM
From: Steve Porter	Read Replies (1) of 45548

Jon, Okay, that's exactly what I need. Pilot is reatiling for $200 at OD. Now OD is usually pretty good at pricing things since they buy bulk. Let's say they are buying for $160, which sounds about right (25% profit margin on a high-tech device is excellent.. most PC's only carry about 10% or less of the retailer). Let's assume that the Pilot costs ~$100 to make, per Eric's guestimate (which is likely much closer than mine since I purpsoely went high side)... We're talking about ~60% margins.. sure it may be only 55% or makybe as high as 65%, but the 60% ball park sounds right when you are dealing in volumes.. Steve

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