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

To: David E. Taylor who wrote (39236)	2/13/2000 11:34:00 AM
From: kcmike	Read Replies (1) \| Respond to of 45548

David, Thanks for your post, and invaluable insight. I have not had the foresight to participate in COMS prior to 2 weeks ago, but I fell like I still got in ahead of the "rush". However, I believe I will "load up the boat" as they say, if it doesn't pop too much Monday after the NYT article. It seems to me with the IPO market the way it is, your numbers look to be ultra-conservative. Do you get the feeling that this IPO may approach the triple-digits? Thanks, Mike

To: David E. Taylor who wrote (39236)	2/13/2000 12:43:00 PM
From: Mehrdad Arya	Read Replies (1) \| Respond to of 45548

David, your summary could not have been more thorough and complete. I'd like to thank you on behalf of many of us on this thread for taking the time to expound and inform those that may have been late comers to 3Com. Since you were circumscribed with relatively dated information, such as the first and second quarters 10Q's, it should be emphasized that 3Com's cash and investments have increased substantially. Their investments in AETH (13%) have added approx. $800 million and in JNPR (5%) have added $900 million to their investment portfolio for this quarter. Aether has only recently gone public so most of its' capital gain came from this quarter. Juniper's market cap has appreciated approx. 55% this quarter to over $33.5 billion. Another note I'd like to emphasize is that 3Com's cash position should improve markedly this quarter, since they will be the recipient of proceeds from the IPO. I surmise the company's cash and short term investments to be closer to $5 billion dollars. This includes their cash, investments and receivables; $2+ billion cash, $2+ billion investments plus $700 million in receivables. This amounts to $15 a share. As you say the company should be allotted a value 2X sales, which is $10 billion or approx. $30 a share. So it would be fair to say that 3Com conservatively has a value sans Palm of $45 a share. Now let us assume the Palm trades at $40 a share after the IPO and it is able to maintain this price, then if 3Com shareholders receive 1.5 shares of Palm for every share of 3Com, then they would get $60. Predicated on the aforementioned I would surmise that a conservative fair market value for 3Com-Palm would be $105.

To: David E. Taylor who wrote (39236)	2/13/2000 12:45:00 PM
From: Sly_	Respond to of 45548

Thanks David, Excellent article. I really liked C7. Obviously you have done much DD and I thank you. Count me in :} Sly_