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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: MrThesp who wrote (35733)	5/4/1999 9:20:00 AM
From: JeffA	Read Replies (1) \| Respond to of 90042

SCANDALOUS! LOL Morning Paul.

To: MrThesp who wrote (35733)	5/4/1999 9:21:00 AM
From: kathyh	Respond to of 90042

good morning, paul... here is an interesting post from the coms thread... To: James Nicoll (30513 ) From: Al Cano Tuesday, May 4 1999 9:18AM ET Reply # of 30516 Great post fm Mcannon: Concerning 3COM's meeting w/MSDW today. I agree with the Mcannon's sumation for the outcome of the meeting nonetheless, I believe 3COM's response will be very positive. As you know, Board of Directors are under pressure due to law suits and the current stock value, so this meeting is a turning point for the company's future and stock value. Note: I still believe that there is still a hidden (top secret)agenda and we will never get the full details. As you know, majority of the top executives always have their own hidden agendas. Another Compaq's fiasco will not be tolerated by WS/MMs and I believe the 3COM Board of Directors know this thus will avoid any negative rhetoric. (if they don't know this, then I should be on the board ) later al. Anyway, Mcannon's article is listed below.... Great meeting points by Mcannon ..... <<The day that Eric B meets with MSDW. It will be interesting to see what comes of the meeting if anything. >> I believe this is a pivotal meeting for 3COM and may determine the fate of the stock for the rest of the year. Here's why: Eric is on the bubble. With last quarters earnings shortfall and associated stock plunge, coupled with the Pfeiffer coup at Compaq as a lesson in Board responsibility, no more bad news will be tolerated. 2 out of the 3 months of this traditionally stronger quarter are now in the can. If the quarter is progressing in a way that puts us back on a pace above where we are pegged after last quarter, he will surely give some encouraging words. If the quarter is not on pace, or will require heroics this month, he will be mum and attempt to reconstitute his "muddled" (analysts words not mine) strategy of "around the edges". He better not attempt to hide behind last quarters rhetoric about a general market slowdown which was proven totally false by all who just finished this reporting season. Compaq recited all the same rhetoric and it was shown definitively that it was a "Compaq problem" not an industry problem. In fact, the unit volume was sky high, though admittedly ASP's were under pressure. Eric needs to show that last quarter was a fluke, that happened because of product transition (Palm, Total Control new features etc. seasonally slow) but that demand is back on track. If he choses to go conservative in hopes of beating diminished expectations next quarter, I believe the stock will sink because of the uncertainty this will create, and even if they end up coming in with a positive surprise, it will only serve to get us back to the mid 20's. He should not quash takeover speculation, but only say that they are not actively looking to sell. However, if a buyer came with a premium price, it is his responsibility to present it to shareholders. Without a favorable outlook, I see the stock sinking, the takeover speculation premium is about to start waning and the uncertainty will cause analysts to be even more uncertain about 3COM's execution ability. If he doesn't beat this quarter, I believe he is gone.