Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KyrosL who wrote (36466)	11/21/1999 12:49:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

A non-member sent the following E-mail to me and I'm posting it here so everyone can chip in some answers : ***************************************************************** "I lurk on the SI site, although I am not a member. I have enjoyed your COMS posts and generally agree with you. One thing no one has mentioned about COMS valuation after the PALM IPO is that: 1. COMS has been buying a ton of COMS stock over the past 2 or 3 years. 2. COMS might be the largest shareholder of COMS. 3. When PALM shares are distributed, COMS will likely be the largest shareholder of PALM. 4. Therefore, big run up in PALM will add significant value to COMS, which could help the share price of COMS after the IPO. 5. Also, it's not clear where the money will go for the sale of the 20% share. I would think it would stay with COMS. After all, they are selling a part of the company to the public. This money will be added to their war chest, and to their balance sheet. PALM will be making money from day one, and won't need this money for "start-up", as another SI poster opined.

To: KyrosL who wrote (36466)	11/21/1999 2:23:00 PM
From: Bux	Respond to of 45548

. But these developments are not well understood by the average investor, they are not getting much publicity in the mass media (certainly compared to Palm), and have not yet started to contribute significantly to the bottom line. I think you are probably right about this. Keyword "probably." The point I was making is often share prices respond to improving fundamentals before this improvement is reflected in the media. Therefore we cannot (with any kind of certainty) attribute all of the recent gains to Palm. Bux