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


To: Tim McGee who wrote (34138)9/15/1999 6:20:00 PM
From: Captain Jack  Respond to of 45548
 
Tim,,,<'puts shareholders in an uncertain situation for 6 additional long months tied to
3Com. The benefit of the Spinoff to COMS holders is not really known until 9 months from now - that sucks.

I think it will piss you off if you see a PALM share..'> I'm pissed at the stupid idea already! The little info supplied does not make it a reason to buy oms for MAYBE something a year from now. Holding for the buyout only at this point,, if EPS is blowout it may mean something,, if just good it will fall farther..



To: Tim McGee who wrote (34138)9/15/1999 6:59:00 PM
From: KyrosL  Respond to of 45548
 
Tim, I disagree. The COMS stock value attributed to Palm will track pretty closely Palm shares because of arbitrage trades. Even though most individual investors will not be sophisticated enough to use options and shorting to take advantage of Palm stock prices, the professionals will, and the net result will be that the value of Palm will be reflected pretty closely in the value of COMS shares until the distribution.



To: Tim McGee who wrote (34138)9/15/1999 7:38:00 PM
From: KyrosL  Read Replies (3) | Respond to of 45548
 
Tim, there is not much sophistication involved. Take the more complicated case of selling calls. If you own shares of Palm through your COMS ownership and Palm is at $75 and you want to cash out at this price, sell a deep in the money call for a price close to $75 and an expiration date a little after your distribution date. This way you will actually get more than $75 for your stock because of the time premium of the call you sell.