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

To: joe who wrote (17293)	6/12/1998 2:46:00 PM
From: W.F.Rakecky	Respond to of 45548

For what its worth <3Com Shares Fall Amid Concern About 4th-Qtr Revenue, Earnings Santa Clara, California, June 12 (Bloomberg) -- 3Com Corp. shares fell as much as 7 percent amid concern that profit at the struggling computer-networking company is being hurt by intense pricing competition on two of its main product lines. 3Com, the No. 2 maker of equipment that links computers to the Internet, slipped 1 3/8 to 23 5/8 in midday trading of 6.38 million shares. Earlier, the shares touched 23 1/4, and have fallen 32 percent since May 1. The company has seen profits plunge 90 percent in the last two quarters because of falling prices on its telephone-based modems. In May, 3Com also cut prices on some of its more- expensive networking systems after rivals Cisco Systems Inc. and Bay Networks Inc. lowered the cost of their competing products. Price competition in their systems business is intense,'' said Patrick Houghton, an analyst with Wheat First Union, who rates 3Com ''buy.'' 3Com is expected to earn 18 cents a share for its fourth quarter ended in May, based on a survey of analysts by IBES International Inc. The company probably will report earnings for the May quarter sometime in the week of June 22, though a spokesman said no specific date has been set.

To: joe who wrote (17293)	6/12/1998 2:47:00 PM
From: Wayners	Respond to of 45548

Is there new guidance from COMS? I think I need to go look at Prudential's track record on COMS from either getting earnings right or doing timely upgrades/downgrades.

To: joe who wrote (17293)	6/12/1998 3:01:00 PM
From: Eric L.	Read Replies (1) \| Respond to of 45548

Joe, Even with a $1.35 FY99 target, that would put the forward PE for 3Com at about 17!!! IMO that's pretty darn good. Don't understand the market, that's probably a good thing. I'm interested in your feedback as to the reliability of forward looking PE ratios. Thanks, 3com Boy

To: joe who wrote (17293)	6/12/1998 3:20:00 PM
From: Wayners	Read Replies (1) \| Respond to of 45548

Okay I did a little homework on Prudential. They came out with their initial recommendation, a hold on 27 Mar 97. At the time COMS was near a 52 week low and trading at around $30. A hold is not a very favorable rating. Right after that COMS proceeds to double in value going to $60 over the next four months. Prudential missed it entirely. Are you going to trust this guy? I'm not. Patrick Houghton with Wheat First put out on initial rating of buy on COMS in Mar 97. That was pretty good timing except he forgot to downgrade it at $60. He's had that buy rating going for more than a year. I wouldn't trust him either. These guys are no better than the biggest novice on S.I. giving stock advice.