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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: Mehrdad Arya who wrote (41650)3/11/2000 12:45:00 PM
From: David E. Taylor  Read Replies (2) of 45548
 
Mehrdad:

I'm not talking about a split, which I agree is not a possibility. But you can't rule out an acquisition or two, and EB would issue COMS stock to pay for them. Any additional COMS stock would increase the present 350 million COMS outstanding, and reduce the distribution ratio of PALM.

To be sure, any acquisition ought to be eventually accretive to the value of COMS stock (unless it's another USRX!), but the bottom line of any acquisition would be that your shares of COMS would wind up being more COMS and less PALM than they presently are. IMO, that would be bad for COMS shareholders, unless the acquired company were a more exciting and therefore highly valued entity than PALM currently is.

I'd rather stick with the current ratio of 1.5, wouldn't you?

David T.
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