3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

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Nov 7 11:47 AM EST

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To: mr.mark who wrote (38837)	2/3/2000 1:06:00 PM
From: Sawtooth	Read Replies (1) of 45548

OK; here goes: <<assume this scenario... PALM ipo's and goes to $100. current interpretation is that the distribution ratio is 1 to 1.5. call it 1 to 1 if you must. i maintain that COMS price HAS to keep pace with PALM, because it is firmly tied to the new issue (PALM) via the distribution....so if PALM is trading at $100, somebody tell me that COMS won't be at or above $100.>> If COMS is selling for less than PALM, assuming at least a 1:1 distribution plan, there is something smelly in, ...uhmmm, ConeydogVille. It would mean that the market is more than totally discounting any value for COMS without PALM OR that there is a significant perceived risk that the PALM distribution to shareholders will not take place as proposed. Neither seems highly likely to me, BWDIK. As others have noted, longer time to distribution increases risk and the gap should narrow over time but a discount (re:valuation of COMS equity in PALM) in the early days is to be expected. It seems like a long way (time-wise) to distribution and a lot can happen in the interim. Any potshots someone wants to take at this are more than welcome. ........VVVVVVVVVVVV

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