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

To: DMaA who wrote (43942)	7/15/2000 3:31:50 PM
From: David E. Taylor	Respond to of 45548

DMA: Thanks, I was not aware that losses had to be reported on an undiluted basis, unlike earnings which are reported both ways. When I checked the 10Q's for the few INET's I have that report losses, I found that ARBA, CMRC and ICGE seem to report only undiluted losses (LPS), while PPRO reports both a basic and diluted LPS. Maybe PPRO are not in conformance with accepted practice. As far as COMS is concerned then, the dilutive effect of outstanding employee stock options will not be apparent as long as the company reports quarterly losses, which we expect for the next three quarters, by which time 3Com may have bought back enough that it won't be a factor once they get around to reporting positive earnings again. Cool. You learn something new every day. David T.

To: DMaA who wrote (43942)	7/15/2000 7:35:18 PM
From: David E. Taylor	Respond to of 45548

DMA: Your post made me realize what was wrong with my D-ratio calc which led me to 1.5139. I assumed that the fact that COMS reported basic and diluted share counts the same in the Q4 earnings release meant that there were no longer any significant number of exercisable options outstanding as of 6/2/00. Duh. I should have realized how improbable that was. The two numbers were the same because COMS reported a loss, and so were not allowed to use the fully diluted share count to report that loss on a per share basis. I'll mentally file that one away for future reference. David T.