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


To: Souze who wrote (41701)3/12/2000 1:08:00 PM
From: Mehrdad Arya  Read Replies (1) | Respond to of 45548
 
Souze, I don't attest to being the most erudite on company financials, but I do know the difference between Outstanding, Floated and Authorized shares. There is a clear distinction between what is authorized and what is outstanding. No BOD in the right mind would dilute the value of its holdings by flooding the market with extra shares. If 3Com's behavior in the last year is indicative of what they intend to do with those share, I would surmise that they either do a M/A which should enhance value based on synergies associated with the acquisitions or they do nothing and continue Buying back shares as they have done in the latter part of last year.

Why would a company Buy its' shares back if they intended to flood the market with more shares? They are definitely not in need of money. Again the spin machines are groping for reasons to push the stock down further and it appears they have come to a dead end. No hyperbole or misinformation will remove me from my investment because I KNOW the truth. This company is grossly under valued and its' only flaw is that it has too much cash, patents and successful investments. Another flaw with 3Com is that its' fundamentals embarrass most companies and it owns 94% of Palm.