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

To: Glenn D. Rudolph who wrote (18021)	6/23/1998 8:35:00 PM
From: joe	Read Replies (2) \| Respond to of 45548

A few comments about these figures: >>COMS: BEAR STEARNS decreased estimate for long term EPS growth from 30.00% to 20.00% per year on 05/29/98<< Even if COMS can show a 20% profit growth in this earnings report or next,...the price will be forced up considerably. At the moment, Wall Street treats this stock as if it has absolutely no future. Once a company starts getting back on track, very often the earnings estimates are jacked up which give a big boost to stock price. That's why, when this stock gets it's legs again, some people are going to make a killing. Lots of those are investor's that have been given 'a gift' by Wall Street - not by accident. >>COMS: UBS SECURITIES has reiterated estimate for fiscal year ending 05/98 of $0.75 on 06/22/98<< This implies .23c tomorrow...I'll take it. >>COMS: UBS SECURITIES has reiterated estimate for fiscal year ending 05/99 of $1.27 on 06/22/98<< This implies a 70% year over year growth. Even if analysts stick with their 20% growth per year, the stock price has to go up to compensate for the 70%. Right now COMS is trading at P/E of 26./1.27 ~= 20.47 for 1999 which is extremely low p/e assuming 20% growth rate and 5.75% or less bond rate. Keep in mind, once COMS shows anywhere near a reasonable future with steady income, these estimates will be jacked up to the same magnitude going up, as they were progressively butchered when lowered over the last 6 months. Also, keep in mind, that ANALysts will never be able to get these numbers correct anyway, but they will influence investing decisions.