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

To: peter grossman who wrote (36227)	11/14/1999 2:54:00 PM
From: Mang Cheng	Respond to of 45548

Peter, the min. valuation of Palm will have at least 2 times sales that gives it a market cap of 2 billion. In such case the benefits to each coms share is low limit = 2 billion x 0.8 / 3.5 million shares outstanding = $4.60 high limit = 10 billion x 0.8 / 3.5 = $23 per share 3.5 is just a rough figure because I don't know how much the company had bought back in the last 6 months. Palm VII is definitely in the hottest internet segment - wireless and extremely pocketable. It's going to be in the explosive wireless/Web digital cell phone market. It has its own wireless protal palm.net. It's a much better business model than somebody selling/giving books away at a loss, I guess. If they play the palm.net portal right, it could be a $200 shares for real. It's now only available in the US, just wait until it's available in Canada, HK and the rest of the world. The anaLsYst community doesn't like coms, they won't dare to say good things about coms because they have been burnt too many times before. They are also waiting to see how much the underwriter is going to price the ipo. Mang

To: peter grossman who wrote (36227)	11/14/1999 3:46:00 PM
From: KyrosL	Respond to of 45548

Peter, responses to your list of possibilities: 1) Palm is not just a PDA. See my note #36204. Palm is Palm.net and Palm OS and web clipping. Palm OS is being adopted by mobile phone companies like Nokia and Qualcomm for their mobile phones -- a market whose sales are estimated in the many hundreds of millions. 2) The Network Systems division is growing reasonably (9%) and has enormous additional growth potential because of VoIP, wireless gateways (3Com owns CMDA data gateways) etc.. We have gone over this potential in this thread extensively. You can find arguments for growth (KyrosL, Mehrdad, Mang) and arguments against (Gary). And there are plenty of news release which, IMO, suggest a bright future for 3Com's networking products. 3) That may be true, but COMS has built a formidable base out of which it broke out last week. I think the technical situation is stellar -- not that I believe in TA :-)