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

To: KyrosL who wrote (36200)11/13/1999 2:44:00 PM
From: peter grossman  Read Replies (3) | Respond to of 45548
 
Let's take some guesses at Palm's value.

I suppose that the other end of the spectrum (from Aether's valuation) might be UPS, whose growth rate is about 1/5 th Palm's. Even applying UPS's revenue multiplier, Palm's valuation would exceed $2.5 B.

Multiplying forward earnings by growth rate yields somewhere around $6 Billion.

Using internet yardsticks, there's no rational upper limit.

I'll guess $7.5 Billion at the end of IPO day one.

This will deduct about 10% of 3Com's current revenue and profits. My guess (just as wild as guessing Palm's value) is that losing the growth rate and prospects of Palm will cost the new 3Com 20% of its value, or about $2.3 B.

Net, net the combination would be worth $5.2 B more, or the equivalent of about $48 per current 3Com share.

Of course, momentum may kick in too.

Other guesses??



To: KyrosL who wrote (36200)11/13/1999 3:15:00 PM
From: Captain Jack  Respond to of 45548
 
K-- the fewer the shares the better. I would rather have people bidding on a lesser number than a much higher number as that should help the mkt cap especially day one - ten when 80% can be sold. That will be one of the largest volume days of the stock and the price - what ever it may be will fall. If I hold long enough to get them and sell them a good portion will go within the 1st 1/2 hour they can be sold. I know of few that want to hold it forever,,


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