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

To: Shroder Wertheim (Hijacked) who wrote (14345)	3/10/1998 10:46:00 AM
From: Greg Jung	Respond to of 45548

Shroder I would guess your assessment is quite likely: New 3com products will do well for a while and generate a revenue spurt in that segment. However since 1996 the number of shares over which these revenues are credited has doubled. The revenue base is more diverse and includes the troubled and mysterious accounting of the US robotics ghost. Additionally the company continues to bleed 3% or so per year additionally for employee compensation. If the outlook was so great and the co. were concerned with shareholder value, they'd be buying back stock at such the "cheap" valuation it is. If they were concerned with shareholder value they would not have let the revenue spurt of 1996 inflate the stock price to such levels (read the boasting of the December, 1996 outlook) leading to the Febbruary crash. Greg