Tim,
Since you make the most sense, permit me to ask. If post distribution PALM and COMS are supposed to go down in value, why are people buying it up? Are they speculating and falling for nonsense and hype or am I missing something?
Unlike others out there who won't admit this, I bought COMS during PALM IPO. [I have yet to see any posts where people admit nothing but smart moves in the market; I can't be the only SI participant who took it in the shorts that day]. Anyway, as soon as my buy at $115 order went through, some MM flicked a switch and the decline started, literally as soon as my buy order went through. I have been sitting through all the turmoil that has occurred since that screwed up day, pretty much ignoring my COMS.
It seems to me that the distribution will not help me. At least how I understand things. First, post distribution, my 400 shares of COMS that I bought at $115 are supposed to decline in value because COMS will be divested of PALM [I understand that COMSV represents speculation as to what COMS will be worth without PALM].
Second, on the 1.484 PALM I receive for each COMS I have, well I understand that PALMV represents speculation as to the value of PALM post-distribution.
Assuming all this, it seems I'll be stuck post-distribution with 400 COMS valued at about $10 to $15 a share and 590 PALM valued at about $20 to $30 a share. Between two I'd have about appx. $22k in value.
Is this accurate? If so, why is the value of COMS going up when it seems post-distribution folks are not going to gain much, if anything?
As to my situation, it would seem best to see how high COMS goes pre-distribution and then unload it [still at a loss]. It seems to wait post-distributution would put me back to risking the total of value of my COMS and PALM declining back down to the $15,000 range.
On top of all this, I bought some COMS on margin and I owe the brokerage $8,000. So if post-distribution COMS dives to $20 in value, well, it's margin call time. True, $4000 margin call is not much, it's just the principle of the thing.
So, it seems I'm in the sewers of Paris, no? |
