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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001300.0%Nov 4 10:50 AM EST

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To: Daniel Simon who wrote (45514)10/23/2006 1:27:13 PM
From: matt dillabough  Read Replies (1) of 45548
 
COMS 3Com: Color on stock stock action and options activity (5.00 +0.33) -Update- *****

COMS is trading up 7.1% this morning with renewed LBO chatter circulating on the name. There has been buyout speculation in COMS since the beginning of the month, with rumors circulating on Oct 5 that the co could be taken private, and Dow Jones reporting on Oct 11 that three private equity firms were competing to buy H-3C, the Chinese joint venture between COMS and Chinese co Huawei Tech... We note that the the COMS Nov 5 calls are seeing interest again this morning (we also noted similar activity on 10/11). A total of 8840 contracts have traded so far today, compared to open interest of 21.8K contracts. Implied volatility has risen around 9 points to ~65% on today's trading. Today's option activity suggests heightened expectations for volatility in COMS prior to Nov expiration (11/17), with exposure to the upside. (OPTNX)
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