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

To: David R. Colby who wrote (28813)	3/7/1999 11:57:00 AM
From: jach	Read Replies (1) \| Respond to of 45548

3COM has revenue of around 3.5B$ and their mkt cap right now is about 9B$. So, it is about 2.5 times of revenue and for networking industry it is at a discount. Average acquistions for medium to large networking firms ranged between 3 to 8 times revenue and more. LU paid more than 10 times revenue. IMO, some of the issues that 3COM needs to get control to be more attractive are: - reduce cost and some overhead, their #of employees and their revenue run rate is quite a bit less than industry norm. Should run at 400k+ per head. CSCO and ASND run at higher rate, in fact asnd has one of the highest. - get more mkt presence in WAN and SP/Internet mkt. One way they can do is to acquire companies (startups or established ones) that are strong in this area. - Add more Internet and Applications aware intelligence into their adpaters. Although, this is rather a broad statement, it's important because in a not so distance future almost all business sectors' applications will be more or less networked to each other.