I am very long 3Com for a lot of reasons, but the Palm spinoff is the biggest and most obvious.
I've guessed the Palm value and asked others. We've gotten very high estimates, all indicating that 3Com is currently either undervalued or very, very undervalued. I agree, but I'd like to hear from a 3Com bear. What is the lowest value you can imagine Palm being valued, and why?
I asked this before and got only an irrelevant reply from KyrosL about irrational valuations. This is not a case of opinions about future performance, nor the adoption or dominance of a patented technology (like Qualcomm). It is a known event.
KyrosL's yardsticks for Palm effectively double 3Com's current price. Clearly, if all investors agreed, then 3Com's price would be much higher now. His yardsticks are wildly optimistic -- which is not to say they won't be borne out, or even low, using some IPO's as models. And frankly, I'd be very happy if they came to fruition.
If we are right about the Palm value, then the market is wrong. Since this spinoff has obvious implications, it is unlike most market inefficiencies, if we are right. So as someone who is very long 3Com, I'd love to hear what the lowest reasonable value anyone would estimate for Palm, and why. |
