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

To: Mang Cheng who wrote (38068)	1/9/2000 3:18:00 AM
From: mr.mark	Respond to of 45548

thanks, mang, for addressing those basic questions for me :) mark

To: Mang Cheng who wrote (38068)	1/9/2000 11:53:00 AM
From: P.M.Freedman	Read Replies (1) \| Respond to of 45548

The growth rates of PALM and COMS are different. PALM will grow in a rate above 50%, but COMS will be less than 20%. So the longer COMS holds the 80% of PALM shares, the better for COMS and the worse for PALM. If they determined the distribution shares on the date of IPO, 25% of PALM growth will go to COMS six months later because the distribution ratio has been set up six months ago. So buying COMS instead of PALM may sound good. However, if COMS distributes PALM immediately after the IPO, we may get the best values of this spinning off. Good luck!