3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

0.0%

Nov 7 11:47 AM EST

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To: simonds who wrote (38862)	2/3/2000 3:03:00 PM
From: gfr fan	Read Replies (2) of 45548

<<Mark, if palm is 100 after IPO, here's what happens based on Cowen's analyst model who put coms sans palm at $20-$24. (100 x 0.93) + (20 or 24) = 113 or 117.>> I think this is wrong. More accurately. Palm at $100 gives it a market cap of $57B. Coms owns 93% of this, or $53B. Coms w/o Palm business is estimated at $5B - $10B, so use $7.5B as a good number. $53B + $7.5B = $60.5B. Take 10% of this away for an arb factor, and the sum of COMS would be at $54B. COMS has 340MM shares outstanding, approximately. This means a COMS price of $180. For COMS to hit $100/share. Palm will need to be given a market cap of around $30B. This translates to a PALM stock price of $52. If PALM hits $52+ after the IPO, COMS will get close or over $100. The numbers don't lie.

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