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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: LouisG who wrote (28737)	3/9/1999 4:55:00 PM
From: craig crawford	Read Replies (1) of 45548

>> DEAL Makes Sense! << I've come up with the best idea for 3Com to start growing it's earnings faster than Cisco (maybe twice as fast!), thereby vaulting itself into the #1 fastest growing networker spot. All of this can be accomplished before the new millennium if Eric B is fired and I am brought on board as the interim CEO. Task #1: Liquidate all assets (fire everyone except me and a few numbers crunchers) and raise billions in cash. Task #2: Quietly acquire a 5% stake in CSCO Results: A) COMS gets to participate (via ownership) in all the high margin, monopolistic businesses that Cisco enjoys. COMS instantly becomes a telcom-router-IP powerhouse. B) COMS earnings grow faster than CSCO because CSCO's rising stock price far outpaces their earnings growth. CSCO can report 30% EPS growth but their stock goes up 50-60% a year, so COMS can nearly double CSCO's earnings gain. Yeah, yeah, COMS has to fiddle with the books to turn those unrealized capital gains into earnings, but they are very good at fiddling with the books. I'm sure they will pull it off. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Interesting comparison: ....................................COMS........................EBAY TTM revenue..............$5.6 billion...............$47.4 million Price/Sales.......................1.6............................420 TTM earnings.............$304 million...............$2.4 million PE Ratio..........................30............................8,300 Employees....................13,000.........................160 Market Cap................$9 billion...................$20 billion

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