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

To: Captain Jack who wrote (34265)	9/19/1999 9:23:00 PM
From: Andre Williamson	Read Replies (1) \| Respond to of 45548

Cap'n I'm not "mad" at management. I'm probably around breakeven in my COMS transactions. As of today I guess you could call it "dead money," though I have had plenty of opportunity to unload over $40. I just didn't pull the trigger. (I did pull the trigger on CSCO after I got a 3-bagger in less than a year and a half - but I'd never get back into it at these prices - I dropped it because it got "too rich" for my blood). I mean, CSCO has gone from a $30b market cap to $230 billion in less than 2-1/2 years (from the April '97 low). It's sales have (only) doubled, from $6b to $12b, over the same period. Valuations get out of whack. I think CSCO is a great company but I just don't see how a doubling of sales justifies an almost 8-fold growth in market value. What's their PE now, 80-100+? They're growing, but not THAT fast. Current valuation almost assumes that current management will live to 100 and (even less likely) work until then. IMO. >>the BOD and other mgrs are a part of major decisions, have done next to nothing to increase SH equity<< I don't know that this is true. How much has shareholder equity (in the balance sheet sense - like cold hard cash) gone up? Of course, from a share price point of view that's true, since the current stock price doesn't suggest growth. But there are also many positive things (for shareholders) that today's price just doesn't reflect. Give it some time. One more thing: Management should as you say be focusing on shareholders. But why should they listen to those who simply want a good trading opportunity or a measly buyout pop? Andre PS: From the perspective of someone who has no need or intention to panic sell, I honestly think COMS right now is about as risk-free as you can get with a tech stock. With good upside potential. I guess we're in COMS for different reasons.