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

To: peter grossman who wrote (41652)	3/11/2000 12:38:00 PM
From: Mehrdad Arya	Read Replies (1) \| Respond to of 45548

Peter, if you recollect 3Com has Revenues close to $5.7 billion. If I am not mistaken I read that 6% of its revenues were attributed to this area and that the company policy is to not disclose separate line items for any segment until they reach at least 10% of revenues. According to their last 10Q this segment had grown 47% Q on Q. Predicated on the aforementioned facts, current market extrapolations and pundits I would surmise the following to be a fair analysis: 6% of $5.7 billion is equal to $342 million. growth of 47% Q on Q would leave us at ($342M)1.47 = $486 million. It should also be noted that the Emerging markets are very high margin areas. For this reason a multiple of 4 is well deserved. Also note that this is no start up, this is a company with the right distribution channels, brand recognition and plenty of wherewithal. Peter, I will go and do a little more dd and see what I can find on the prior data associated with the Emerging markets. Do remember these areas are in their nascent stages, hence I am certain it will be difficult to find much. What we can surmise is from what the pundits such as IDC et al have attributed to potential growth in these areas. We can also extrapolate based on our own encounters and experiences. Broadband and Wireless are growing exponentially, VoIP is pervasive and the pudits expect this to be a $50 billion market very soon. LAN telephony appears to be very popular and 3Com is continually winning awards in this area. Home Networking, this is an area 3Com and MSFT are in collaboration, did you know that 3Com receives a royalty from MSFT for every network based Windows 2000. Knowledge is Power and it rules if it is in the right hands. Good luck. :)