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


To: LouisG who wrote (34441)9/22/1999 8:25:00 PM
From: Doug  Read Replies (1) | Respond to of 45548
 
LouisG : Your valuation and that of the street as expressed by the current price are quite different. The 20% Palm unit spin off will not do much for COMS shareholders if prices remain at these levels.

A part spin off is usually done at the high to increase one Cash position for further acquisitions. A good example of this is Toronto Dominion Bank and its 20% spin off of T.D Waterhouse. If you study the price movement of these 2 Companies, you will appreciate that the rise in T.D was made
just at the time of the announcement and infact fell thereafter.

Whilst no 2 Scenarios are identical, I feel that we, as COMS shareholders, can only benefit if COMS price starts moving higher prior to the IPO.

Shall look forward to yours/TIM's or anyone else's comments.



To: LouisG who wrote (34441)9/22/1999 10:48:00 PM
From: schlep  Read Replies (1) | Respond to of 45548
 
Louis
I know from your post that 2.28B is 20% of the 11.5B total cap at 16x sales.
But please explain where the $1.7B came from in your post below.

thanks in advance
-schlep

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.