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

To: joe who wrote (17744)	6/18/1998 9:52:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

"3Com Now In Bargain Territory (COMS)" Wednesday, June 17, 1998 Value investor John Buckingham took notice when stock in networking leader 3Com (COMS) reached a three-year low of $24 on June 1; the stock had been as high as $78 in early 1997. Analysts say that intense pressure on 3Com's gross margins will yield a puny 4Q with earnings falling to $0.15 per share vs. $0.48 per share for the same period last year. Buckingham advises patience. As 3Com lowers inventory levels in its distribution channels, the firm's earnings will rebound. He expects 3Com's core businesses of network interface cards, modems, systems products and remote-access products will pick up steam this year and next. Analysts agree, as earnings estimates for FY 99 average $1.45 per share. Though Buckingham recently cut his valuation for 3Com to $52, he recommends buying COMS up to $25.80 as it now trades at 175% of revenues and 17x FY 99 estimated earnings, which he calls "historically low multiples for a networking stock." For more on John Buckingham's recommendation see "Currently Recommended Stock Commentary," June 1998, The Prudent Speculator: Al Frank and John Buckingham recommend out-of- favor, undervalued stocks trading for low valuations relative to what they think the businesses will be worth over the next three to five years. investools.com For a 30-day free trial go to: investools.com

To: joe who wrote (17744)	6/19/1998 2:22:00 AM
From: Eric	Respond to of 45548

Joe, If it does report well I think that is very doable. If they can report increasing modem sales and finally get rid of the "old" modem overhang then it will move up. My cost basis is $47 per share but I need about $51 to break even with the margin bill! What I'm really waiting for is Eric B's comments on all the merger activity and how it relates to 3Com's future. The big question is "Has 3Com been approached by any companies"? of course he won't answer directly but the room and all of us investors will be listening to every nuance! Isn't investing fun! Eric