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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: Bernie Goldberg who wrote (12012)7/8/2000 5:53:36 PM
From: Steve Grabczyk  Read Replies (4) of 18929
 
Hi Bernie, and thanks:

Well it kind of helps. My questions follow:

1) Do I sell the PALM outright when I get it to avoid the potential drop in price immediately after the distribution?

2) Or, do I add the shares of Palm directly to my already existing Palm and not adjust PALM's Portfolio Control? Which would no doubt trigger a sell of some amount.

3) Do I somehow adjust both COMS' and PALM's Portfolio Control?

I agree with your assessment vis a vis being willing to sell to the greedy, etc. You'll get no argument from this quarter (seeing that my cash reserve is '0'). I'm just not sure how I decide within AIM's guidelines. I don't recall the book discussing how to deal with spin off distributions. Should I simply treat it like a split but somehow transfer the $ value to PALM?

If anyone has any ideas, I'd sure appreciate it. Here are my factoids:

COMS # shrs = 319; PC = 18974
PALM # shrs = 321; PC = 15795

add 160 shares of PALM to the mix after the distribution.

Regards, Mixed up in Millsap
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