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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Dec 18 4:00 PM EST

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To: KevRupert who wrote (43242)5/14/2000 11:56:00 AM
From: David E. Taylor  Read Replies (1) of 45548
 
Advalorem:

Depends on how fast the arb gap closes. There was a 35% arb gap on AOL/TWX on the first day of the merger announcement, but it narrowed pretty quickly, and once it did, people were buying AOL instead of TWX.

As the gap narrows, the motivation to sell PALM to get COMS will disappear, and the arbs will think about short covering. At some point, both PALM and COMS will start up again, and it may be sooner rather than later.

And we still have things like CPI's, Greenspan's, and lots of anti-PALM FUD to watch out for.

David T.
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