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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (33272)	8/26/1999 11:29:00 AM
From: Robohogs	Read Replies (1) \| Respond to of 45548

Would seem to fit with heavy selling ongoing in LU as CSCo explodes higher.

To: The Phoenix who wrote (33272)	8/26/1999 7:22:00 PM
From: Tim McGee	Read Replies (2) \| Respond to of 45548

Gary, just consider that LU gets a multiple of 64 on EPS of 1.06 COMS gets a multiple of 22 on EPS of 1.09 LU could absorb a price of almost $70 before this becomes dilutive. Buying COMS for the revenues and earnings alone (at $38-$50) could bring a good return for LU. While this is simplified, this is the gist of the game with acquisitions. Especially in LU's case where there is a limitation on pooling of interests and they need increase revenues. ----- All that aside, I'm not sure LU will buy COMS whole. I'm still hoping for a spin off of PALM (probably at .20 shares for each COMS share) before an acquisition. PALM could indeed fetch 6 to 8 Billion in market cap on its own. Also don't forget that 3Com owns about $1Billion in JNPR stock that it did not have a few months ago. That should tack on $3 to each COMS share. We should possibly assume that 3Com has been buying its shares back over the past few months while it has been so cheap but that would only add about .50c to the share price. ------- The bottom line in all this is that 3Com mgmt must realize that it has to come to terms with someone on a deal. The street, shareholders and everyone else has completely lost confidence with mgmt. The could continue to announce great deals and revenues but we will never see great multiples until some other mgmt team is in place. Tim