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

To: Joe S Pack who wrote (37012)	12/14/1999 1:16:00 AM
From: KyrosL	Read Replies (2) \| Respond to of 45548

As was pointed out in the thread before, the key number in the filling is the 'up to' $225 million that Nokia, AOL, and Motorola will pay for 'up to' 4.5% of Palm equity. The 'up to' language is there to protect them in case the EVENTUAL IPO offering price soars -- after all they are forking over real cash to Palm, not shares. These numbers suggest a very preliminary valuation of $5 Billion for Palm. If recent experience is any guide, this preliminary valuation will be exceeded by at least a factor of 2 when the actual IPO offering price is set, and, of course, after the first day of trading the Palm valuation will again increase by at least another factor of two IMO -- that will be $20 Billion, which, BTW, is close to my valuation guesstimate a few weeks back. Palm's earnings this quarter will play a decisive role in how the valuation evolves, and, IMO, they will be spectacular. At this point, I believe that any price below $50 for COMS will be viewed in one year as an unbelievable bargain. I never thought I would buy more COMS, but if I can get it at less than $50 tomorrow morning, I will. Kyros

To: Joe S Pack who wrote (37012)	12/14/1999 11:57:00 AM
From: Sonki	Read Replies (1) \| Respond to of 45548

Details of Palm Spinoff Disclosed do u know how the current stocks will be recognized in terms of palm or coms SANTA CLARA, Calif. (AP) - 3Com Corp. hopes to make at least $100 million off its planned spinoff next year of its Palm Inc. unit and will allow America Online Inc (NYSE:AOL - news)., Motorola Inc (NYSE:MOT - news). and Nokia Corp. to invest in the new company, according to new filings. 3Com has said it expects to sell about 20 percent of Santa Clara-based Palm to the public, while distributing the remaining shares to 3Com shareholders. The company said Monday it expects to legally separate the two entities in late February. Palm is a popular electronic organizer that has sold more than 5 million units and helped spawn a cottage industry for so-called personal digital assistants. In a filing with the Securities and Exchange Commission, Palm disclosed that AOL and Motorola each will take a stake of as much as 1.5 percent - with Motorola seeking to license the operating system in new wireless devices and AOL seeking to develop Internet services for new portable gadgets. Nokia announced earlier this year it would put the Palm operating system in cellular phones due next year. Palm said it had net income of $9.7 million for the three months ended Aug. 27, compared with $8.1 million in the same period a year earlier. Revenue jumped 52 percent to $177 million from $116 million a year earlier. Palm said its profit margin declined because of additional costs associated with the launch of the Palm VII wireless Internet service. 3Com is scheduled to report second-quarter financial results next week.