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

To: The Phoenix who wrote (43191)	5/11/2000 3:14:00 PM
From: Daniel Simon	Read Replies (1) \| Respond to of 45548

Too much risk...yeah I'm sure you are right. Subtracting Palm $38 (1.5x25.5) from coms leaves you with about $5 per share. That must be at least 2x trailing earnings... CSCO is around 150x trailing earnings? Much safer. (safety in large numbers right?) And to think only tuesday I figured investors had caught on...what a pain.

To: The Phoenix who wrote (43191)	5/11/2000 4:23:00 PM
From: Bill Coenen	Respond to of 45548

Gary, I bought Cisco yesterday but more for reasons of balance than security. I am heavily over-weighted in COMS but feel strongly about it as a safe investment at these prices with a major upside potential, albeit more in the PALMS component. I'll let you know on 10 Nov 2000 what the right move was. Hopefully, they both would have been stellar. Luck to us all, Bill

To: The Phoenix who wrote (43191)	5/12/2000 6:30:00 PM
From: The Other Analyst	Read Replies (1) \| Respond to of 45548

CSCO? Do you realize that CSCO with a market cap of over $400 billion and revenues of $20 billion has already discounted phenomenal growth? GE has the same market cap, and it has more than 5 times the revenues of CSCO. GE is all over the place. turbines, aircraft engines, power systems, applicances, TV network, financial services, plastics. they are a huge conglomerate. How is Cisco attractive? They make parts for the Internet, which is nice, but the size of their market is small compared to the size of the markets GE is in. CSCO already discounts that it will grow to account for maybe 6 to 7% of the earnings of the entire S&P 500. If we have to be paying out that much money for Internet infrastructure every year, it is not going to be so economical. Think about $400 billion. That is the present value of the future dividend stream from CSCO. Sit down with a spread sheet and work out how big Cisco has to get, and how fast, to simply justify where the price is already. I tried to justify it and could not. So I sold my CSCO.