3Com Corporation (COMS) Message Board

STOCKTALK

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 0.00170

-19.0%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Souze who wrote (38919)	2/4/2000 12:27:00 PM
From: Kevin Podsiadlik	Read Replies (2) of 45548

Well that's very interesting. I hadn't realized it would be a complete divestiture, that makes a big difference. 532 million PALM shares held by COMS divided by 342.3 million shares of COMS outstanding comes to a ratio of about 1.55 PALM shares for every COMS share. That sounds good. Only thing I'll add is that the 10% arbitrage figure still seems too low, given the high probability that PALM will not maintain its opening day price. Tentatively I'd start by valuing PALM based on its IPO price (if $16, that would come to about $24 7/8 per COMS share) regardless of where it trades the first day, and close the gap from there.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next