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

To: KyrosL who wrote (36463)	11/21/1999 7:20:00 PM
From: Tim McGee	Read Replies (1) \| Respond to of 45548

Kyros, I don't agree with the following: The fact that we may not participate in the sale of the initial 20% is, IMO, a small price to pay for letting the market decide the price of Palm, It is no small price... If there is to be an increase in Market cap of 10B or so, I want to be fully involved - as a long term COMS holder, I want my equal share of that 10B. If COMS market cap were to increase by 8B (.8*10B) that would be a damn good return on my investment, but under the current plan I don't expect that to happen. If the actual numbers are confusing (they are important), then my argument can be boiled down to a comparison. Put $1000 into PALM at the IPO launch price set by the underwriter (probably CSFB - my guess). Put $1000 into COMS on this same day at the opening price for the day. My belief is that the money put into PALM will far exceed the money put into COMS on the day before the 80% of PALM shares are distributed. If I am right about this (I could be wrong), then the difference between the amounts is the money that has been transferred from COMS holders to pure PALM holders. COMS holders get a fraction of this money back when the distribution happens but that fraction is the conversion rate they decide to implement. That is why a COMS holder would like to get a higher number of PALM shares for his/her COMS shares. Remember, COMS owned 13% of AETH, had big investment in JNPR and Extreme and received no increase in share price due to these investments. This all may be complicated but these are the methods that are used when money flows from small investors to big investors. COMS owes its institutional and other large investors big-time b/c of its screw-ups over the past 3 years. Of course they get away with it by offering smoke screens such as: its a tax-free transaction. Tim