COM earnings fell 91% for its fiscal first quarter due to
absence of a litigation gain it recorded a year earlier and
demand remained weak for networking equipment.
To make things worse, the stock has more than doubled this year.
The networking-equipment maker has been refocusing on the U.S. market as its overseas businesses struggles. It also has been cutting costs. 3Com has been positioning itself as a low-cost alternative in the enterprise market.
Despite 3Com's forecast earnings excluding items of three to five cents a share on revenue of $270 million to $280 million in July, it looks like all signs still leads to us avoiding the stock for now