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

To: blankmind who wrote (17021)	6/6/1998 9:58:00 AM
From: Shroder Wertheim (Hijacked)	Read Replies (2) \| Respond to of 45548

You bet on COMS will go up based on the valuation. Too bad, the stock market is almost never based on valuation. COMS needs to addresss (1) Modem market is terrible, price has been sliding. (2) How to increase system sales to ISP, Telco and enterprise. Cisco Cat5505 is cleaning everybody up. CoreBuilder product-line has much high performance. The over-engineering and expensive Cat5505 just recently be upgraded to 3.2Gbps backplane, what a joke as a enterprise system (as a reference, Extreme has close to 20Gbps, Foundry will have 128G in couple months, even Coms has close to 20Gbps) Yet Cisco knows how to sell to much higher growth market. where COMS still targets the small to medium size market). (3) NIC is not going to have much growth in the next copule of years, how to cut expensive fast enough in these divisions.

To: blankmind who wrote (17021)	6/7/1998 2:42:00 AM
From: Mang Cheng	Read Replies (2) \| Respond to of 45548

<1. CSCO has 10x market cap yet only 2x sales over COMS. 2. ASND has 1x market cap yet only x/4 sales. 3. BAY is about 3x/4 market cap yet has negative earnings unlike COMS which has remained positive. > Blank, I don't understand your no. 2 and no. 3 above. My understanding for price/sales ratio for various companies are : Cisco 10.6 ASND 8.2 BAY 2.9 COMS 2.0 CS 1.4 We can see that coms is selling at a very low psr. Much lower than BAY and ASND. Asnd is really expensive. Mang

To: blankmind who wrote (17021)	6/7/1998 11:42:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 45548

<< 3 more reasons coms should rise (thanks to chris) 1. CSCO has 10x market cap yet only 2x sales over COMS. >> The C$CO valuation argument holds no water. You could have made the same argument 3 quarters ago when COMS was much higher. It has always traded at a discount to C$CO on a P/S basis. There are good reasons for that. Also, C$CO's market cap is 8 times greater than COMS, not 10. << 2. ASND has 1x market cap yet only x/4 sales. >> --Same story with the A$ND argument. Like C$CO, A$ND has higher margins and has performed better than COMS, so it enjoys a higher P/S ratio. << 3. BAY is about 3x/4 market cap yet has negative earnings unlike COMS which has remained positive. >> Your comparisons don't mean much. Both companies have had charges which make the numbers appear out of whack. Besides, there are numerous things to take into account when trying to arrive at a fair value. P/S is only one measure.