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

To: Mehrdad Arya who wrote (36652)	11/29/1999 11:52:00 AM
From: Andre Williamson	Read Replies (2) \| Respond to of 45548

Thought: Over the past two years COMS has been working to "unstuff" the channels, presumably by selling less into the them than is being bought out of those channels. On the surface this has translated to "lost" earnings each quarter. Now that inventory turns are where 3COM wants them, doesn't this suggest that ceteris paribus, sales and earnings should increase, a modest one-time "step up?" Comments? A second thought: 3COM's buy backs of apparently over $300 million of stock in the past year or so, at an average price of well under $30, looks like yet another great "investment" by management. At today's price, these buybacks have added the equivalent to $0.50/share all by themselves. That's about 4 month's earnings! Say what you will about the uncertainty and stagnant nature of the non-Palm COMS business, but the amount of equity management has been building for shareholders has been pretty amazing even if the stock did spend a long time in the dumpster. And if the business (beyond Palm) is in fact turning around, COMS could be back in the big leagues soon, and priced accordingly. We'll have to wait and see. Andre