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

To: Doug who wrote (29094)	3/20/1999 5:58:00 AM
From: Harold S. Kirby	Read Replies (1) \| Respond to of 45548

Dough: WS does not like question marks when it comes to the confidence factor within management. Whenever a "major mistake" is made by the management they (WS) expects to see bold and decisive action...even if "heads have to roll"! If WS receives the impression that it will be "business as usual" and no changes forthcoming then interest will wain until the corporation "gets the message"! On the other hand...if action comes within a "reasonable" amount of time and are acceptable by WS then we will see some confidence return. I am sure that the board is aware of the present situation and seeking ways to access "Damage Control", and to come to some form of "strategy" to regain the confidence of WS. I imagine the lights at 3com Hqs are on late at night! There certainly will be some "infighting" and the stronger dog will prevail...no doubt about that! The key to the power play will come into view at the conference call. My bets are on the COO...he will do the speaking. Why ? Primarily because he is the only one who has the "respect" of WS at this point. If he does the speaking this will give the Board some "wiggle room" to effect some sort of change at a later date...most likely before the annual meeting of shareholders. The Board has to put some one "up front" besides benahamou who has PR experience to quell the concerns of WS and the shareholders. Benahamou is noted for his lack of sensitivity with analyst's and "enjoys" yanking their chains ! This will not "cut it" and I certainly would hope that the Board has advised benahamou to modify his disdain directed at these individuals. The man is a "bright" Engineer but is lacking when it comes to dealing with the Business Community. He has what I call the General Haig attitude..."Make no mistake about it...I am in charge here (3Com)"! This type of attitude, as far as I am concerned is a reflection of an individual who is "Power Hungry" and views others below himself lacking in ability ! When they mess up...they blame situations and others, as benahamou has done this past month. He does not seem to accept the fact that 3com is not the only company that is faced with the slowdown in Asia and Latin America. He cannot use this as an excuse for the poor performance of this qtr. He has to recognize that his "strategy" missed the mark ! For me...he has sealed his fate! The only thing that can save him is a major contract in the immediate future. I doubt that this will happen.. HK