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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: opalapril who wrote (34094)	9/15/1999 12:05:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 45548

You've got it backwards. Short term COMS stock will pop after the IPO due to - as you pointed out - a large holding in the new company. THat's when to sell. Long term - after the remainder of the company is distributed, the increased float will cause the PALM shares to sag...furthermore without PALM holdings COMS will tank - JMO OG

To: opalapril who wrote (34094)	9/15/1999 12:21:00 PM
From: Andre Williamson	Read Replies (1) \| Respond to of 45548

Actually, I don't think so. If COMS retains 80%, COMS won't NECESSARILY increase in value to reflect a soaring Palm price. As evidence, witness the clear travesty in COMS' current valuation: One could argue with merit that Palm alone is easily worth COMS less its cash stash. Yet COMS remains in the dumps. No, I'm not so sure that soaring Palm shares will drag COMS along with them. Those who benefit most will be those who can sell on the IPO "pop" - and COMS shareholders will be excluded. According to the announced plan, COMS holders will all get their Palm shares at once, which will invariably cause a huge crash in Palm's stock price when the shares are distributed. You also ignore the fact that a major factor in COMS current attractiveness IS Palm. Once it's gone I for one am not so sure I'll stay long on the remaining COMS. Why should I as a current shareholder be punished for that? Andre