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

To: Alski who wrote (39329)	2/15/2000 11:11:00 PM
From: JB	Respond to of 45548

Makes sense to me....agree!! Given the coms stockholders will receive 1.5 +/- palm shares at distribution....is it not reasonable to expect same for leapholders when exercised? (In contrast....what would be a rational for the "option powers" to split off an independent palm option?) _______________________ For all....leaps vs margins. Bought coms Jan 2002 Leaps....strike 30....for $28....coms was about $52 (first Leap...very educational!) Here's the difference: Bought coms at $52....have $18 gain....an increase in buying power of $36. On same date bought aforementioned leaps at $28....yielded a $17 gain....but no change in buying power. Conclusions..... Margin: if stock increases....buying power increases.... increasing leverage opportunities Leap: if stock increases....no change in buying power.... or leverage. In either case, if stock sinks....Jack Daniels time!! Thanks for your informative response, JB