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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: The Phoenix who wrote (34238)9/17/1999 4:52:00 PM
From: KyrosL  Read Replies (2) of 45548
 
Yes,... again, which begs the question..why hold COMS? Why not pick up PALM at the IPO? Without PALM COMS is dead weight.

Because you can pick up Palm as part of COMS CHEAP!

You are making the implicit assumption that you will be able to buy Palm at the IPO price, and that this price will be relatively cheap, and that the actual increase in price will occur after you buy it. If Palm earnings and sales are excellent over the next couple of quarters, the IPO will be spectacular. So, you or any other ordinary investor WILL NOT BE ABLE to get it at the IPO price. By the time you are able to buy it, it will have skyrocketed to the "fair" valuation of Palm -- and COMS shares will have increased accordingly to account for this new Palm valuation.
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