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

To: hitesh puri who wrote (27869)	2/9/1999 3:35:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

>>Waht pisses them off ? Bad revenue growth, negative surprises in the quarters, bad PR and vaccuum of news.<< I agree, but see my the post afterwords. I think if COMS makes numbers this quarter (or at least reasonably close), then we will be OK. Revenue growth will be better next quarter and following. COMS traditionally has a slow quarter, this quarter. Estimates are for COMS to grow 25-30%/year. PR: COMS has been doing much better on this the last few quarters. In fact, we get PRed to death, but, IMO, the quality of the PRs has improved because we're closer to getting great contracts. vaccuum of news: This is only because of this last week. COMS is in a bind because the truth is they do not know what Feb numbers will look like. They have admitted many times that this is a difficult quarter with low visiblity. IMO, they've been up front and honest, but their past is still a monkey on its back, but has been improving quite a bit until just last week. >>When will most tech companies understand that WS does not understand technology.<< They don't and I believe this is why they don't know if sales are doing well or not for jan-feb. Look how last quarter was a total surprise to them (5 cents earnings surprise). >>They will not get a high when your new powerful NIC is working with policy based networking but they will jump when you say it will rake in millions by taking market share from the competitor.<< I know. In corporate speak: "give us the bottom line". I think COMS knows this, and they're frustrated trying to communicate this. Their ass is on the line right now. They have to come up with some "reasonable numbers", to satisfy the "bottom line" approach that WS is looking for. >>Hence the pressure on the stock since 2 years.<< Forget about the friggin' merger. That's history now. Inventories have been stabilized for a while now. Supposedly, they have turned the corner. Bottom line is this quarter is a test for COMS to show that it indeed has "turned the corner". joe