SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Nov 7 11:47 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: chester lee who wrote (36456)11/21/1999 3:09:00 AM
From: Bux  Read Replies (2) of 45548
 
My experience on the short side however, suggests that the parent company of an IPO typically falls after an IPO. If this pattern hold true, then there is an exist and re-entry point.

Of course. When Palm shares are split off COMS, the value of COMS drops by an amount equal to the value of the Palm that was separated. But you can't escape that by exiting and re-entering.

Maybe you are suggesting that COMS shares will fall in value beyond what can be attributed to the spin-off shares of Palm? To take advantage of this, the fall, assuming there was one, would need to be substantial for me to justify taking the tax hit. Problem is, we won't know if the shares will fall or rise beforehand.

By then there may be people wanting the COMS shares without paying a perceived premium for Palm. This could cause COMS shares to rise above the expected value. We'll just have to wait and see.

Bux
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News