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

To: Moonray who wrote (28033)	2/11/1999 3:56:00 PM
From: wallyam	Respond to of 45548

33 is history!!!

To: Moonray who wrote (28033)	2/11/1999 3:57:00 PM
From: mr.mark	Respond to of 45548

ahem... from last night: "i doubt that COMS will dip far below 30, or if it does, will bounce nicely." #reply-7766232 :)

To: Moonray who wrote (28033)	2/11/1999 7:02:00 PM
From: Wigglesworth	Respond to of 45548

3Com bought cheap dinner for analyst, resulted in HOLD rating!!! ** Hambrecht & Quist Hambrecht & Quist Hambrecht & Quist Company: 3ComPrice: 33Recommendation: HOLDNotes: a, fFirm: Hambrecht & Quist Department: TechnologyIndustry: CommunicationsDate: 2/11/99 Ests. Q1 Q2 Q3 Q4 FY 1999 0.24A 0.36A 0.34 0.39 1.33 1999 Prev Est 0.24A 0.36A 0.36 0.40 1.35 2000 0.42 0.46 0.48 0.52 1.89 2000 Prev Est 0.43 0.47 0.49 0.53 1.93 52-Week Range 23-51 Market Cap 2.52 Shares Out 376 Book Value $8.02 Net Cash/Share $3.64 3-Year EPS Gth 20% CY98 P/E-to-Gth 100% FY Revs 6.08 CY EPS 1.62 CY P/E 20 Lowering Estimates On 3Com To Reflect Challenging February Quarter We believe that 3Com's February quarter is challenging and that the company is undertaking aggressive cost/expense cutting measures in order to help margins. We also believe that 3Com is vulnerable to market share gains by Cisco Systems in 3Com's key distribution channel, two-tier distribution. Therefore we are reducing our estimates for the February quarter to $0.34/shr on revenues of $1.52 billion, from $0.36/shr on $1.54 billion. We reiterate our HOLD rating. We believe that 3Com's February quarter is very challenging and that the company is cutting costs/expenses in order to improve profitability. We think that the company has scaled back spending for advertising, travel and entertainment. We believe that 3Com's dominance in two-tier distribution is vulnerable to Cisco's rapid growth in the channel. We would note that Cisco consistently increased market share in the fixed port 10/100 Ethernet switch market throughout 1998, a key product segment in two-tier distribution. We believe that in the second half of 1998, Cisco displaced Nortel/Bay Networks as the second largest vendor in the 10/100 fixed port market and that Cisco is aggressively pursuing 3Com's leading position. We would also note that in November, Cisco reported that its channel run-rate had reached $2 billion, demonstrating dramatic growth over the past year. Furthermore, we believe that pricing pressure in adapter cards may impact 3Com's revenue growth in the February quarter. We would also note that it appears that the company is slowing its hiring efforts, which may imply a recognition for a more challenging environment going forward. As a result, we are lowering our estimates for the February quarter to $0.34/shr on $1.52 billion, a reduction of $0.02/shr in EPS and $20 million in revenues. We reiterate our HOLD rating.