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

To: The Phoenix who wrote (36790)	12/3/1999 11:11:00 AM
From: Michael Bonnette	Read Replies (1) \| Respond to of 45548

COMS without PALM has good revenues - but they are flat. CSCO, LU and NT will grow revenues by more than COMS will generate in total in 2000. Will COMS actually show revenue growth this year? WS rewards companies that are showing growth and that are leading their markets. COMS continues to lose market share. This will not attract investors. This needs to change....regardless of the number of patents and products etc.. They could all the patents on the planet the fact is they are failing to capitalize in the market. Gary, This basic point is what I was talking about earlier, but you seem to be still missing the point. Focusing on a the company as a single blob and saying that if the entire blob is not growing revenue then they are not worth owning is missing something. Within the blob there are some very separate operations, some growing, some shrinking. We all know which sectors are shrinking. The point is that the "fans" of 3Com also recognize that the money spun off the shrinking businesses are being used in useful and productive ways. If we were talking about an industrial company the money being spun off should be returned to shareholders as a dividend. 3Com is using the money to fund new product initiatives. Right now, the old companies are shrinking faster than the new initiatives are taking hold. When one of the initiatives has taken hold, Palm, you try and argue that it should be eliminated from the equation. Now if 3Com was taking the capital from these declining operations and trying to re-invigorate those operations, THEN I would be worried. This re-investment mentality is a mistake that many companies make when faced with adversity. Instead, 3Com has recognized where they have won/lost and understand they are within one of the most dynamic industries over the next 10 years. Keep working hard and investing until you find core competencies that match the changing industry. Isn't that what "value" is all about. By focusing on top line growth of the blob you (Wall Street) misses the fundamental nuggets within the company. That's fine since once the nuggets are exposed as jewels is typically when WS jumps on the stock. My guess that if we use the stock price as the gauge, that should be around $80. - Mike