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

To: jach who wrote (30423)	4/30/1999 10:31:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 45548

Hey,Jach...look at MS comments on CSCO...but you know better.

To: jach who wrote (30423)	4/30/1999 10:48:00 AM
From: polarisnh	Read Replies (1) \| Respond to of 45548

jach, While I understand what you are saying about relative valuations I think that you are being a little simplistic in your comparison of P/E ratios. P/E ratios are compiled by using forward earning visibility, consistency, and anticipated growth rates. There are other factors but these are the primary ones that I focus on. Cisco has a historic record of providing excellent forward visibility, consistent analyst guidance, very little in downward surprises, and excellent growth rates. Therefore, the street has rewarded this stock with a high P/E because it is a relatively safe high growth stock that doesn't surprise its shareholders. 3Com has a history inconsistent earnings, hence poor visibility, and misleading future growth. Therefore Wall Street has knocked the tar out of this stock. Which stock has the potential for higher growth in the next 12 to 18 month time frame? 3Com is obviously if Benhamou can dig his head out of his a**! All Cisco has to do is hiccup (Earnings warning.) and it will be chopped by a 1/3 faster than you can say Palm Pilot since its price is based upon earnings 2 to 3 years out. IMHO, Steve