3Com Corporation (COMS) Message Board

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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: Dushyant Narayen who wrote (30183)	4/26/1999 5:52:00 PM
From: gfr fan	Read Replies (1) of 45548

<< otherwise it is a poorly run, low margin, dog, with severe execution problems. Right now I would be singing through the streets with an offer of $40 ->> Rebuttal: gross margins are high 40's and climbing, inventories are decreasing, inventory turns are increasing, $1.7BB in the bank and estimated $750M in free cash flow this year. Not what I would call a dog. Yes execution has been an issue, and COMS needs to find a way of consistently growing the top line (they've said so). The real execution test will be to see if they can migrate away from analog modems into the higher growth areas. If so, it will be like the '95/'96 again when USRX and COMS were both on a tear. If they don't pull this off, then being acquired is probably the story.

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