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

To: peter grossman who wrote (36215)	11/14/1999 4:36:00 AM
From: simonds	Read Replies (2) \| Respond to of 45548

I don't think you'll see coms buy out soon, not until the 80% palm distribution is completed. I couldn't find any clear reason for coms holding palm's majority for 6 months, other than Uncle Sam (we need a corporate tax expert on this one). If I'm right, talking to coms about take over that will happen in 8 to 9 mos just doesn't make sense. However, no one will stop you if you want to go to bed with coms now; just don't expect wedding bells. A rough estimate on palm ipo: it's at $600m/yr clip. Can't talk about p/e cause it doesn't have one. So, let's give it 10 p/s, and you get $6B. If 20m shares out the gate in Jan 2000, it will give you 1.2B/20m = $60/share on ipo closing day. IMO coms will be $50 in June 2000, and even if palm stays 60 in June the 80% will bring 4.8B/340m = $14/coms share. Or, a distribution of .25 palm share to each coms share. So, we're talking about mid 60s for coms middle of next year. I'm also very excited about VOIP win with ATT. That's is the ultimate reference for coms, and a very very bullish sign going forward.