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

To: Dushyant Narayen who wrote (30183)	4/26/1999 1:48:00 PM
From: American Spirit	Read Replies (1) \| Respond to of 45548

COMS wants and needs to be taken out. Suitors are definitely interested. Very likely a deal will be struck. Hopefully it's a good one a la FORE.

To: Dushyant Narayen who wrote (30183)	4/26/1999 2:37:00 PM
From: Martin Milani	Read Replies (1) \| Respond to of 45548

I would be really surprised if the buyer does not break up 3com..Modem and palm pilot going one way..NIC another and core siwtching and routers another ..

To: Dushyant Narayen who wrote (30183)	4/26/1999 5:52:00 PM
From: gfr fan	Read Replies (1) \| Respond to of 45548

<< otherwise it is a poorly run, low margin, dog, with severe execution problems. Right now I would be singing through the streets with an offer of $40 ->> Rebuttal: gross margins are high 40's and climbing, inventories are decreasing, inventory turns are increasing, $1.7BB in the bank and estimated $750M in free cash flow this year. Not what I would call a dog. Yes execution has been an issue, and COMS needs to find a way of consistently growing the top line (they've said so). The real execution test will be to see if they can migrate away from analog modems into the higher growth areas. If so, it will be like the '95/'96 again when USRX and COMS were both on a tear. If they don't pull this off, then being acquired is probably the story.