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

To: SpecialK who wrote (25206)	11/24/1998 6:51:00 PM
From: mp	Read Replies (4) \| Respond to of 45548

Regardless of what happens in the next few days, COMS is GOING UP sooner or later. No IFs, BUTs or MAYBEs. Here is why. 3COM has traditionally received a PE of 44 (mid-point of 5 year P/E range). The consensus estimate for COMS earnings is 31c and whisper might be slightly higher, and my guess is they will probably make 35c this quarter (or better), and perhaps 40c next quarter. This works out to about $1.50 this fiscal year for earnings and maybe even $2 for next year. That puts the fair value at $65+. I don't think it will go there all at once, but 49 to 50 by Dec 98 seems quite doable. So instead of worrying about what it is going to do next day or two, start planning some nice vacation in Tahiti in a month. Now if you are really the patient sorts, you may even see $80 by June 99, which will certainly be enough for a luxurious trip to Olympics 2000 in Sydney. So folks, if it bothers you like it does me, do not follow the news on these few down days. Pretty soon, we will all be smiling.