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

To: KyrosL who wrote (36204)	11/13/1999 4:25:00 PM
From: peter grossman	Read Replies (1) \| Respond to of 45548

I like your guess better than mine. I am reluctant -- I don't know why -- to base Palm's valuation on "comparable" companies which have no basis in fundamentals. Palm should be the best of both worlds -- participating in these aether markets and multiples while being fundamentally well positioned, undoubtedly very solid balance sheet, and making money at the same time. If you truly see 75, why not buy Jan or April 40's or higher. I have stock and a bunch of Dec. 35's. What do you think is the best way to play this?

To: KyrosL who wrote (36204)	11/13/1999 11:16:00 PM
From: peter grossman	Read Replies (1) \| Respond to of 45548

I think we both forgot that 3Com will own 80% of the new Palm; therefore, our valuations should be $44 and $68 per share. We used apparently rational yardsticks; there are reasonable means to arrive at even higher numbers. So why hasn't COMS really jumped since they announced unlocking this value. What are we missing here? What is the lowest value you can imagine Palm being valued? Can the spinoff be worth only whatever it deducts from the 3Com value? Many times investors might not reckon that the sum of the parts is worth more than the whole, but why would this be the case when the spinoff is announced. Not to mention, I imagine that the reason for the spinoff is to unlock value for any of a number of reasons, not the least of which is rectifying poor past decisions and performance in the eyes of important stakeholders. If this is a committed mindset, there are other ways to increase value of both Palm and the new 3Com.

To: KyrosL who wrote (36204)	11/15/1999 6:33:00 AM
From: KyrosL	Read Replies (2) \| Respond to of 45548

Given the Sony deal, my $10 Billion valuation guess just for Palm OS, web clipping, and Palm application software (see msg 36204), sounds more and more conservative. I hate pointing out the parallels between Palm and Qualcomm again, because at present QCOM is held in such exalted state by the investment community, but this new deal reminds me very much of where Qualcomm was right after the Ericsson agreement early this year. Seems to me that Palm OS is becoming the mobile device operating system standard guys & gals, just like QCOM's CDMA technology is being accepted as the wireless air interface standard. Palm Computing smells more and more like an emerging Gorilla.