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

To: opalapril who wrote (28998)	3/15/1999 7:27:00 PM
From: Gopher Broke	Read Replies (3) \| Respond to of 45548

But a "good solid company" does not in itself justify a P/E of over 30, which is still where COMS sits even now. To go up from here COMS have to come up with projections of substantial earnings growth. But where from? NICs and modems have become commodity items. COMS has to get into completely new products with higher margins. Palm Pilots are good, but not vital enough to generate the volume sales COMS needs now. I guess COMS could hope to corner the burgeoning client-end DSL connectivity market, but there is some fierce competition there as well. What other "products and services" do they have up their sleeve which will generate decent profit margins?

To: opalapril who wrote (28998)	3/16/1999 4:34:00 PM
From: BobInBush	Read Replies (1) \| Respond to of 45548

You are right if you are a long term investor. 3Com has had some pretty regular price swings over the last few years. This looks like a bottom. Those who can wait will be rewarded. If you are working on margin, than this could be very scary. I've added @25 and will sell covered calls ~35-40 Its just not going to happen this week. Just remember, when Goldman Sachs upgrades, you sell.

To: opalapril who wrote (28998)	3/16/1999 10:54:00 PM
From: Harold S. Kirby	Read Replies (3) \| Respond to of 45548

opalapril: I hope you are correct...but the tremendous volumn flight of the institutions certainly is an indicator that it will be "awhile" before 3com mgmt regains the confidence and trust of the street. It will take something short of a miracle for Benahamou and his CFO to regain any creditability! Many will be monitoring the upcoming conference call and how mr. benahamou handles himself during some very "hostile" questioning. As far as I am concerned I foresee a "restructuring" of mgmt prior to stockholders meeting. The COO is the only one who has the respect of WS at this point...the rest are marginal. It would not surprise me the least to see a class action suit against the Board by one of those Silicon Valley legal firms that specialize in such, especially when a stock drops 50% in less than a month ! This type of action is what will send a "wake up" call to the Board and causing them to effect some type of reorganization. Fundamentals of the organization still appear positive over the long term, but any more "unforgivable mistakes" by mr. benahamou could affect the confidence of the street over the long term strategy of the organization. HK