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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: David E. Taylor who wrote (44183)7/26/2000 9:13:15 PM
From: DEM  Read Replies (1) of 45548
 
David,

You made a very good comment about the initial Palm & Palmv spread that sparked a thought. Maybe, since Palmv opened for trading on July 11, some traders were buying there short Palm shares back, and shorting Palmv. This would somewhat explain how the spread increased to $4 during the run up to $46. The confounding fact in this theory would be the oddity that the short interest did increase, but as you said maybe they included any shorted Palmv shares. Hopefully someone will be able to piece it together after the August expiration, and everything is unwound.
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