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

To: kcmike who wrote (39237)	2/13/2000 11:59:00 AM
From: David E. Taylor	Respond to of 45548

Mike: I wasn't trying to predict how high PALM will go, or if it will drag COMS with it at the 1.5:1 ratio, though I certainly have my opinions on both issues. I was merely trying to point out that COMS at around 60 presented the opportunity to acquire PALM at more or less the IPO price of 14 to 16, with virtually no down side risk, and the fact that I had seen very little press on this aspect of the IPO. How high will PALM go?? I'll be really surprised if the final pricing isn't hiked to 20 or even 25 by 2/29, and that would put COMS at par at 65 to 73. I'd also wouldn't be surprised if PALM opens trading at twice whatever the IPO price is, and could easily go as high 100. That will drag COMS with it at some discount to the 1.5:1 ration, but the real payoff comes when the PALM shares get distributed in August. What to do now is easy -- buy as much COMS as you can, through in some call options for spice if you like, and hang on. What to do between P-day and D-day is more complex. David T.