Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: joe who wrote (26484)	12/23/1998 11:50:00 AM
From: KM	Respond to of 45548

INCA is a market maker used often by institutions.

To: joe who wrote (26484)	12/23/1998 11:54:00 AM
From: Dr. Arvind	Read Replies (1) \| Respond to of 45548

according to BRIEF news : 3COM CORP. (COMS) 48 5/8. Back to solid profitability on a strong revenue gain. After the close Tuesday, networking company 3Com (COMS) reported fiscal second quarter (Nov) profits of $0.36 a share. That was a solid five cents ahead of expectations, and up sharply from the year earlier profit of just $0.01 a share. Equally impressive, revenues rose 28.7% on a year-over-year basis and were up 10% from the first fiscal quarter. COMS had been in a big time slump, as year-over-year revenue gains the past four quarter had been: -14%, -14%, +1%, and -12%. Some tech companies, such as Micron Electronics, have managed to turn profitability around lately by cutting costs. For COMS, this quarter is another indication that not only do they have operations under control, but they are actually seeing demand increase. CEO Benhamou said they experienced "sustained favorable market conditions across the networking industry." New products have been announced as have strengthened OEM relationships with IBM, Hewlett-Packard and Toshiba America. Business is good, and COMS may have gone from being a turnaround play to a growth company once again. The stock has made a good run. IT is at a new 52-week high and indicated to open about 3 points higher Wednesday. Since just October, it has double in price from 24. From a valuation standpoint, this may be fully justified. Using an annualized $1.42 off an $0.36 profit from this quarter, the price/earnings multiple is a reasonable 36 (assuming a 51 open on the stock). That is somewhat high, but COMS has pretty solid momentum in the business lines. If the keep sequential revenue growth up, profits will likely exceed the current fiscal year consensus estimate of $1.32 and approach the 1997 level of $1.41 per share. For the fiscal year ended May 2000, they are expected to earn as much as $2.00 a share. Right now, that type of growth looks possible.