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

To: Mang Cheng who wrote (30005)	4/23/1999 10:20:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 45548

3Com Stock Rises Amid Takeover Rumors (04/23/99, 5:57 p.m. ET) By Kimberly Caisse, Computer Reseller News 3Com stock received a boost Friday amid speculation that it is ripe for a takeover by any company interested in gaining a foothold in the data-communications market. Just prior to the market's close, 3Com shares were up 18.5 percent to 26 7/16. However, that is down considerably from the company's 52-week high of 51 1/8 and about 6 more than its 52-week low. It is the third Friday in a row that 3Com's stock price increased because of takeover rumors. Potential suitors mentioned in reports circling Wall Street include European cellular-phone companies Nokia and Ericsson, telecom-equipment maker Lucent Technologies, Apple Computer, and Siemens, a long-standing 3Com partner. 3Com, based in Santa Clara, Calif., declined to comment. 3Com is trying to improve itself and Wall Street's opinion of the company, said Craig Johnson, principal at The PITA Group, in Portland, Ore. "A week ago 3Com finally took action to cordon off their [network interface card]and modem business," Johnson said. "They seem to be taking action to distance themselves from their low-margin business." 3Com's stock fell in February following the company's preannouncement that its third quarter earnings would be lower than expected. "The rumors are very credible," said Jim Slaby, an analyst at Giga Information Group, in Cambridge, Mass. "I think now is the right time to do it." Overall, 3Com is a strong networking company, analysts said. The problem is it has disparate products aimed at disparate markets, Slaby said, pointing to the market differences between the Palm Computing handhelds, switches, remote-access servers, and client-access products.

To: Mang Cheng who wrote (30005)	4/24/1999 2:04:00 PM
From: Stu Bishop	Read Replies (1) \| Respond to of 45548

Mang Cheng, In one of your posts, you mentioned an upgrade by Needham: "...The stock got a boost earlier this week after Needham & Co. analyst Peter Lieu on Monday raised his rating on the shares to strong buy from buy. Lieu lifted his growth estimate for the company based on its successful Palm Pilot business and its moves into high-growth markets for DSL equipment, cable modems and LAN telephony gear. -By Mark Boslet; 650 496-1366 " Can you tell me where I can find more detail on this? If he's raising his growth estimate, I'd like to know what his new estimate is. Also, did he raise any quarterly or FY earnings estimates, and if so, what are they? Thanks for any info you can provide. By the way, I've got to tell you I don't think I've ever been so uncertain about a stock. If I look out 1 year, I can see this stock at $20 and I can see it at $100. It all depends on getting back on a better growth track and getting into more profitable businesses, besides NICs and modems. If Cisco has been so successful, I would think that their businesses are the place to be. I wouldn't just surrender to them and look to other business like modems. I would go straight at them and compete with similar or superior products, and with exceptional SG&A. Otherwise, if they can't make money in NICs and modems, then they need to have more than just Palm Pilot. If PalmPilot doesn't last, or if pricing pressures take away its profitability, then the financials just get worse. I got into this stock, most recently, in Jan and Feb 1997, and I'm down 50%. I'm really losing patience with them. The growth estimate for them has steadily fallen and currently sits at 20.4%. Earnings estimates are constantly being revised downward, and it seems like I'll never make money on this. If you believe the FY00 earnings estimate of $1.30, and apply what I consider is a fair P/E of 20, based on recent company performance and expectations going forward, then this stock is worth $26. So we're at my fair value, and I can only expect to earn 20% per year unless something dramatic happens. Everytime I start to sell, they show signs of improvement; but after a quarter of improvement, they come out with more disappointments. I CAN'T STAND IT ANYMORE. Sorry to vent on you. Do you know where I can find out some details on the upgrade? Thanks. Stu B