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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-23.5%Nov 7 11:47 AM EST

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To: XBrit who wrote (43395)6/3/2000 4:53:00 PM
From: Mang Cheng  Read Replies (2) of 45548
 
Julius, it appears to me that the coms employee option thing only affects coms and it doesn't affect the distribution of Palm to us. coms shareholders will be getting 1.5 Palm on record date. The total number of shares coms ends up with after the distribution is only coms' problem in the future - it doesn't affect Palm.

Your statement: "because that way the makeup in their unvested options will be a maximum number of new COMS shares."

doesn't seem to be totally correct since the ratio is determined with just one day difference in coms before distribution /coms after distribution share prices. Unless Palm remains very high right before distribution then coms employees will get more of their coms shares but in which case if Palm remains high then we'll all be laughing to the bank anyway and who cares how many potential coms shares will be there the next morning.

These are very complicated issues and more discussion is always good.

At this time I am much more concern about getting Palm back up to around $38. Rimm is selling at price-to-sales ratio of 32 and Palm is only selling at around 15. At $38, the psr for palm is only 22.

Mang
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