Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: drmorgan who wrote (13206)	3/1/1998 12:25:00 PM
From: Moonray	Read Replies (3) \| Respond to of 22053

Well Derek, life with 3COM has been discouraging for me. When I elected to stay with 3COM after the USRX takeover, it was a bet on the growth and profitability of the Internet. The growth is there (and will be) but I fear things will continue only moderate on the profit front for 3COM. Besides the intense competition in the networking equipment business, there is 3COM's avowed strategy to gain market share. This is almost always a plan for low profits. A year ago (post merger announcement) May '98 was expected to bring $2.50, now the forecast is for $1.00, and $2.00 for May '99. Given a PER of 30 for the '99 earnings shows me a lid on COMS (baring some event - like a merger) stock at $60 in the next year or so. While $60 is worthwhile for me to wait for, it is a far cry from what I expected the future would have shown. Regardless, what we need are some good earnings, that is imperative. o~~~ O