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

To: Dave von Hausen who wrote (38596)	1/29/2000 4:26:00 PM
From: Souze	Respond to of 45548

Dave, Since no one else has yet answered your questions, I'll add what little I can and leave the rest to others. True than COMS has a market cap of about $16 billion. Since I'm still trying to figure out what 3Com's business will look like a year from now, I'm uncomfortable with agreeing to any p/e. But, assume 18 is the right number and that 8 billion is the resulting marketcap for (3Com - Palm). The $8 billion remaining is roughly where the IPO is being priced, i.e. 570 million shares x $15/share. So, you and the underwriters agree. But IPOs, particularly hot IPOs, seldom trade at a price anywhere near the underwriters's price, and if it's a really hot IPO in a hot field it keeps going up without regard to p/e. Witness Juniper Networks from last year. And wireless seems to be the hot field this year. All this is a long winded way of saying I don't have a number, but I think the market will be generous in valuing PALM. DWTHDIK.