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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (18816)	2/12/2000 7:49:00 AM
From: arnold silver	Read Replies (1) \| Respond to of 29382

copied from the s i board COMS A reply to a privat mail: xxx, when coms was at 38-44, it was a tough hold because the spin off picture was not clear at that time. Many people wonder why coms is still at $60 when everybody seems to think it can go much much higher. But the truth is the market is quite efficient. Based on the published $16 ipo price, coms is fully priced right now at $62. But this price will be adjusted upward slowly as the ipo date get closer and closer. I think it should ramp up to at least $72 right before ipo day. After that, it will all depend on how high Palm flies. Palm can go to $60, $80, $120, $150, $180, $200, $300, $400 .....take your pick and anything can happen. One more uncertainty after ipo is we don't know how efficiently will coms be able to track the price of Palm. The market has never gone thro' anything like this before in its entire history so nobody can predict what would happen. I think after ipo we can play it like this : Let's say Palm ipo at $40 and it runs to $80, that's a 'double' so we should remove half the chips from the table and sell 1/2 of our holdings in terms of coms. If Palm runs to $160, that's another 'double', sell another 1/2 (coms). If Palm pulls back, hold the rest - don't panic. If it pulls back more than 30% from recent high, repurchase part or whole of the sold portion - at this time we can purchase Palm directly with the money we got from selling coms. Just some thinking out loud to myself. Mang Arnie PS the distribution will be 1 1/2 palms to 1 coms If palms gets to $50,it should reflect and raise the price of coms by $75.