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Technology Stocks : 3Com Corporation (COMS)
COMS 0.001600.0%Nov 26 9:30 AM EST

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To: David Lee who wrote (30199)4/26/1999 4:03:00 PM
From: Tim McGee  Read Replies (1) of 45548
 
Thats part of the point of my message...

ASND is trading at 99 because it moves with LU...not because it's own value

Part of the value of a COMS buyout is that once it happens, another company with a much higher P/E is the buyer. Therefore COMS is likely accretive to the buyer, thus raising its stock price thus raising the buyout price.

COMS is being discounted now b/c of its mgmt failures. A buyer is like new mgmt and the discount turns into a premium. If LU buys COMS then LU's premium becomes COMS premium (at 105, COMS would trade at 4x what it trades at now).

Tim
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