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

To: Racso who wrote (29236)	3/25/1999 12:28:00 PM
From: Jeff Sheeran	Read Replies (3) \| Respond to of 45548

75% discount?? Correct me if I am wrong here but CSCO has grown the top line at 40% year over year. I specifically remember when USR/3com merged in their fist quarter they had net sales of 1.6 billion and CSCO has net sales of 1.7 billion for that quarter. Close to 2 years latter CSCO's net sales were 2.83 billion while 3coms were 1.411 billion, this is a long way form the 1.6 announced 2 years ago. Why should 3com trade at the same multiple as CSCO when they have yet to grow the top line? I have held 3com for a couple years now and I think they have great products but I have concerns as well. I an concerned about the margins, CSCO, INTC, MSFT all have high margin products to offset low margin products that compete with COMS. I really don't think INTC needs to make money off of a NIC they have other revenue centers. Now latter this year we have handspring coming out with a new line of palm devices based on Palm OS, I am sure this will pressure 3Com sales of palm, even though Handspring will license the Palm OS I would think that the margins on an os license are less than selling a Palm. Just some thoughts that is all. Regards, Jeff