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

To: Mehrdad Arya who wrote (39582)	2/21/2000 4:27:00 PM
From: David E. Taylor	Read Replies (2) \| Respond to of 45548

Mehrdad: I have no intention of getting into a drawn out discussion with you (a la Gary) on COMS prospects after the PALM spin off, but there are a couple of points in your post I can't leave alone. First, I don't need to be told to do my dd on this company, because I have already done my dd on COMS and PALM up the wazoo and back. I've been following COMS since 1996, and I have an entire file drawer filled with COMS financials, actual and potential market segment analyses, new product initiatives, etc. As I've posted a couple of times here, despite my dd, I've been burned twice before by relying (in part) on EB's pronouncements on COMS prospects and analysts' blurb on COMS potential, so until items (1) through (5) on your list show signs of being actual revenue growth drivers rather than potential ones, I will not believe anything EB says. My motto is "show me the revenues and earnings EB". Second, Items (6), (7), (8) on your list will become "discontinued operations" for COMS after D-Day in August, just like A's revs/earnings are now "discontinued" for HWP, so they will no longer count. Third, while you may value COMS on a sum-of-the-parts basis, the market generally doesn't. Otherwise, a company like GM, due to its stake in GMH and other stuff on its books, would be valued around 120, vs the mid 70's it's currently at. So while COMS investments are probably worth on paper what you say, they don't count in COMS trading price as far as the market is concerned. OTOH, if someone wants to buy out a post PALM COMS, they'll have to cough up for the cash and investments, and that's why COMS ran up last year on the takeover rumors. A post PALM COMS may well be a takeover target again, though I seem to recall a previous post here that argued that the PALM spin off will be a poison pill to any potential buyer for 2 years after the spin off, so that potential may be well in the future. Lastly, I don't believe anyone here is a "fool". While many of the "facts" you cite are indeed "facts", they are not, as yet, actual revenues and earnings. The future revenues and earnings that may flow from these "facts" are, in fact, your "opinions" as to their potential, and nothing more. If and when these potential revenues and earnings become real, you can be sure I'll be there with a decent COMS holding to take advantage of them. In the meantime, I'm 100% focused on the "PALM effect" on COMS stock price, on IPO-Day, and on D-day. Good luck. David T. P.S. to Gary: Damn! Why did I do that?