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

To: Innuit who wrote (10352)	11/15/1997 9:38:00 PM
From: Rational	Respond to of 45548

Why should the P/E be 20 if earnings are expected to decline or stay flat? If there is a lot of uncertainty about the earnings, WS will punish a stock as it has done to many, IMHO. Sankar

To: Innuit who wrote (10352)	11/15/1997 10:12:00 PM
From: Glenn D. Rudolph	Respond to of 45548

Assuming the worst estimate of $1.83 COMS should be at least $36.00 (at 20 PE). For every 5 cents higher it should be about $1 higher. If it comes in about 2.4 it should recover to at least $48.00. Innuit, I would agree with your statement. I do believe the street is concerned there will not be sequential growth in COMS anymore but rather sequential reductions in earnings. This accounts for the low PE the street is giving COMS. I am not saying I agree with the street. Glenn