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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Nov 7 11:47 AM EST
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To: Robert Griffin Gregory who wrote (43138)5/9/2000 3:02:00 AM
From: Mark Iguchi  Read Replies (1) of 45548
 
If you plan on holding onto COMS through distribution (which I assume you are) hold onto the 200 longterm shares, as the adjusted cost basis after distribution will reflect both COMS and PALM with long term capital gains (hopefully!).

Of course, you don't mention whether or not you plan on selling, and when, so I can't really formulate a strategy for you. Just hold onto the longterm shares longer than the short term shares. Average cost basis doesn't really apply here as you have two separate lots of shares, LT/ST. If you plan on having short term gains this year, and you plan on selling half of your holdings, it would make sense to choose the ST lot of shares--as it would offset the ST gains at a higher tax rate...but that's obvious, right?

I too have held onto my longterm shares and am waiting for the distribution. I may write short term calls right near distribution time to protect against any slight dip due to selling pressure, but other than that...
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