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

To: Doug who wrote (29746)	4/17/1999 11:37:00 AM
From: kech	Read Replies (2) \| Respond to of 45548

Doug - How do we know that this "edge" strategy of Eric's isn't actually correct? It has truly been painful as a shareholder, but with the proliferation of PDA's, cell-phones, Palm's etc using the internet, it may just be that Eric's vision has not yet been realized. For example, Alcatel just yesterday announced a plan to link screen phones to the internet. I don't know exactly how this benefits 3COM but it certainly seems consistent with his vision of proliferation of "intelligence" at the edge. At least it seems that the game will not just be about computers linked to smart central switches. Once ADSL and cable modems come on line, we might actually be pleasantly surprised. Post 29723 above says it better than I can: It is my belief, that the high growth areas like the handheld computing, cable, and DSL Modem access, home networking , LAN telephony, voice over IP and wireless networking is the wave and the link to the future. All these areas have the best prospects for high growth and high volume business for companies that can leverage them. In addition, 3Com strengths in technology, manufacturing, distribution and brand are strong assets that can be used to establish a leading position in these emerging markets as well. Granted the USRX purchase was a disaster - but after studying USRX carefully, I think it had some good technology but never made the transition from a small growth company to a stable large capital company. Eric inherited the management failure because this company had postponed this transition earlier in the name of "flexibility". The stuffing of the inventory channels was only the tip of the iceberg on the lack of mature management systems at this company. I think Eric was ambushed by USRX being less than it was represented to be, but the idea of pushing to the edge could still be viable. It would be more interesting to me to know what the mileposts will be on evaluating this strategy, and determining whether it could still succeed, than whipping ERIC further at this point. On the other hand, if you know this is not correct, that the strategy is already a failure, I would love to hear more of the details.

To: Doug who wrote (29746)	4/17/1999 10:29:00 PM
From: Harold S. Kirby	Read Replies (2) \| Respond to of 45548

Dough: You are absolutely correct. It is benhamou & cadre that I want removed. Once he goes....the new CEO will put his own men in those positions. A new CEO could not possible "trust" the old CEO's team. Once benhamou or any CEO resigns...his team will certainly be actively looking for another organization to join as they know what is coming. Usually...the first signs of a CEO's pending resignation is when his key players submit their resignation(s) prior to his. He is giving them time to find another position elswhere. One of benahamou's exec. left recently...I believe he was in the Marketing Dept. If in the next few months others follow then it will be a fairly safe bet that benhamou will exit...most likely sometime this year or next! I think the shareholders are going to be the final "thrust" of the sword come september. In the years that I was in Management...I do not recall a time when "Key Personnel" ever protested the "Chief's decisions"...it would have been "instant suicide"! I certainly had my share of encounters with my "Leader" but they were always "very private" and I was extremely careful as to what I conveyed. You can come out of these "sessions" with..."either you follow my directions or I will find someone who will"! It is usually the Board of Directors that can gain the "attention" of the CEO. Shareholders also can apply quite a bit of "leverage" upon the CEO through the Board. As I see it...3com (Board of Directors)are looking at the situation very keenly and need some "breathing room" before they make any major decision(s). They would like to have someone "in the wings" on board when they make a major Management Reorganization. This recent announcement was "window dressing" to get a feel as to how WS would react and hopefully give them some "breathing room" and remove some of the pressure they are getting from the shareholders. Obviously...it did not accomplish their objective. The stock cannot remain in the 20's for two qtrs and they know it. If Claflin can substantially decrease their "variable and fixed costs" during this next qtr. their Income statement certainly will reflect greater profitability and he will gain some "attaboys"... Claflin will accomplish what benhamou has been unable to do...need I say more? I do not think that Claflin came on board to remain as COO...his goal is to be CEO. Lt.Col's want that "first star" and once acquired they like the look of another one, two,or three! Claflin is no different...his sights are set high and if he moves the ship away from the rocks...well I'm sure he'll expect to be rewarded! Warfare is Warfare...doesn't make any difference if it is on a battlefield or within an organization...the dog that chews up the enemy is the one who will be "well fed" by the owner(s). benhamou has been "injured and wounded" by WS & MM and they will continue with the "punishment" until a "new dog" replaces him. benhamou & cadre are only "fooling themselves" if they think that WS,MM,& shareholders are going to allow them to "screw over them" again. It is just a matter of time...another disappointing performance or two will end it! Regards, HKirby