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

To: The Jedi who wrote (26630)	12/25/1998 5:05:00 PM
From: Shroder Wertheim (Hijacked)	Read Replies (3) \| Respond to of 45548

No no, HQ just does not know much about networking. COMS last earning growth relative to the last year is more than 3000%, revenue growth is 29%, and it is selling at anywhere from 20 to 40 of Calendar 99 and 2000 earning - depending on which year and who's earning. It is reasonable priced for today's market. If COMS $.36 a share earning does not warrant $50 share price. How can CSCO which earns almost the same per share earning, and it is about $95 per share (more than twice of COMS current price). In the next 4 quarters, COMS could easily has higher earning and revenue growth than CSCO, yet CSCO is selling at more than 15 times sales (vs 2 for COMS), 80 next 4 quarters PE (vs 30 for COMS). I understand CSCO deserve higher valuation due to its leading positions, but not to the sky high valuation that the street gives to Cisco.CSCO is not invisible and dominant as MSFT or INTC, ASND, COMS, Extreme (50M to 60M annual run rate at Gigabit backbone, up from 0 two years ago), Foundry (40M to 60M annual run rate), even struggle CS's Yago product is getting 30M a quarter, where do Extreme, Foundry, and Yago take market away from - Cisco's expensive and antique Cat 5k/7500. Foundry is very successful with its layer 4 device with ISP such as AOL. Clearly Analysts have underestimate the last 3 quarters COMS earnings , and it continues to underestimate COMS future earning and share price. The last two-day slide is a simple matter of profit taking, in addition, this is a highly momentum driven market. There is not much fundamental, valuation-based investment. The Largest of the large cap and Internet stocks just keeps shooting up, regardless of their skyrocket valuations vs. the reality. For 99', I think CB9k, PB could have significant impact on the bottom line; COMS should aggressively sell into ISP where Cisco has strong holds at this moment. But all CSCO has is a very weak product; even Catalyst 4000 that is scheduled to be available Q1 99 is just an OK product. Cisco just gives you the aggregate bandwidth, but not the backplane bandwidth for a reason; it is the same reason that Cisco refuses to participate in third party independent testing.

To: The Jedi who wrote (26630)	12/27/1998 4:06:00 PM
From: Judy	Read Replies (2) \| Respond to of 45548

Kiri, Most of COMS products appear to be low-margin commodity-type items, except for CoreBuilder 9000 (Refer to the list that Joe posted me, thanks Joe!) Message 6953890 As such I don't see earnings growth being sustainable by current products. COMS foray into the future Voice over IP market remains to be seen, as it will be competing against LU, CSCO and ASND for that segment. Next quarter's earnings are expected to be flattish, with subsequent growth in the quarter after next when/if future products take off. A trading target of 54-55 is achievable, but to me leaps may not be the trading vehicle of choice for an 8-10 point gain.