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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00400+185.7%Dec 5 9:30 AM EST

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To: Uchos who wrote (39761)2/24/2000 7:47:00 AM
From: David E. Taylor  Read Replies (2) of 45548
 
Uchos:

There's something screwy about your numbers but I haven't figured out what it is. Mang posted a useful table which set forth the resultant price of COMS for various PALM prices (all the way to $500/share!!) and discount rates from the 1.5 ratio, using an assumed price of 30 for the value of the underlying COMS:

Message 12854748

You can easily plug your own value for COMS into this instead of Mang's 30. To use your last example, with a PALM price of 50, a 28.5 billion market cap, underlying COMS at 30, and zero discount rate from the 1.5 ratio, COMS would trade at 105, vs your 69.55. Mang's numbers are correct, something's wrong with yours, maybe you can figure it out.

Good luck.

David T.
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