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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-87.0%Nov 7 11:47 AM EST

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To: FNS who wrote (38065)1/9/2000 2:45:00 AM
From: Mang Cheng  Read Replies (3) of 45548
 
<S-3. PALM IPO explodes and doubles within 1-2 days of trading... In this case, COMS stock may very well increase some percentage - but not necessarily 100% step with rise in PALM >

If we use Hwp/A experience, hwp did track the price of A extremely well. Every hwp share will get around 0.4 share of A. When A went up in the last little while, hwp rose in lock step. example :

hwp was $119 when A was $80
0.4 of A is $32
that means the street is valuing hwp itself at $119 - $32 = $87
$87 is actually a historically high price for hwp so the end result was that the combined hwp/A has no discount at all. So whoever holding hwp now is holding hwp + A with no penalty.

If this holds true for coms/Palm, I think we will be laughing to the Bank.

<S-2. PALM IPO stays cool...trading in first 1-2 days sees only 10-20% increase from original ipo price..>

At the same day, Yahoo will drop to $15 and Qcom will drop to $12.

<S-3. PALM IPO explodes and doubles within 1-2 days of trading...>

Double is not "explode", it would be a "shame".

Mang
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