3Com Corporation (COMS) Message Board

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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: David E. Taylor who wrote (43903)	7/14/2000 5:15:31 PM
From: Tim McGee	Read Replies (4) of 45548

The difference in PALMV/PALM represents a hedge against the price going down before or shortly after DDay. One can not buy PALMV and sell the shares as PALM before DDay. Of course, one could do an arb play to try to get the differnce in the prices. So right now at least the market is telling us that the there is concern about the potential that the price of PALM may come down... OR... short covering of PALM is just happening too fast... OR the market is saying that it doesn't realize there is this thing called PALMV. Btw, in response to an earlier post by someone, PALMV has to exist only b/c COMSV exists. This may be obvious but COMS = COMSV + 1.484 PALMV (which equals 73.596 based on closing prices for COMSV and PALMV). COMS closed at 73.625. So...some of the math is actually working out. And it looks pretty strange that the market (at least those aware of COMSV and PALMV) nailed the distribution ratio exactly - based on these numbers. hmmm

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