PALM - The rebirth of Palm Inc. Message Board

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Technology Stocks : PALM - The rebirth of Palm Inc.

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To: kcmike who wrote (168)	3/1/2000 12:20:00 PM
From: Greg S.	Read Replies (1) of 6784

If PALM hits say 200, which would mean COMS should track at $330 or so, and COMS is selling at 250, BUY COMS and SHORT PALM! You lock in an automatic $80 profit! My point is that hurting PALM is only going to hurt COMS as well. Or do you really think that if PALM takes a big tumble, COMS is actually going to go -UP-? No, people are going drop COMS shares as well because the PALM shares they would get from the distribution would be worth far less. These two companies are tied together both fundamentally and psychologically. You make it sound like there would be an 80 dollar arbitrage to be had. I say you might be able to make some money that way but the spread won't be nearly as big as you suggest. And if the spread is big, it's because it is RISKY: COMS might decide to only distribute 1 share, not 1.5, and sell the rest to other institutions. Is that unthinkable? So the gain is very, very far from "automatic". -G

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