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

To: mr.mark who wrote (34439)	9/22/1999 4:54:00 PM
From: LouisG	Read Replies (2) \| Respond to of 45548

NEW COMS VALUATION--- My quick analysis is as follows: 1. PALM is valued at 16.3x sales. This is equivalent to CSCO-both have sales growth rates of 50%, and CSCO is valued (capitalized) at $232B/$14.2B sales = 16.3x sales. This values PALM at ~$11.4B. I believe this is conservative. 2. COMS gets 20% = $2.28B + $1.7B cash today = $4B cash to BUY HIGH GROWTH businesses. This is equivalent to $6+ share at IPO. 3. Shareholders get 80% of PALM = $9B cut/357M COMS shares outstanding = $25 per COMS share. 4. The post spin COMS may be worth ~$17-20/share + $11 cash = $29 5. NEW COMS + PALM = $54 by mid '00