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

To: Sawtooth who wrote (39606)	2/21/2000 7:23:00 PM
From: Mehrdad Arya	Respond to of 45548

...VVVVVVVVVVVV I couldn't agree with you more, the BOD would not divest the Palm unless they were assure of themselves turning the company around. Their cash position is solid, their investments couldn't be any better, their inventory problems solved and with the Emerging markets growing at approx. 50% Q on Q, they will easily replace the revenues generated from the Palm before their reprieve period is up.

To: Sawtooth who wrote (39606)	2/21/2000 7:28:00 PM
From: Ditchdigger	Read Replies (1) \| Respond to of 45548

<why would EB and the Coms BOD implement a strategy to cannibalize Coms with the planned Palm divestiture? > perhaps one needs to look closer at the options plan..How much does EB and the BOD stand to profit from the spinoff of PALM,,especailly in light of their failure with 3com(and it's stock price) since late 96? DD

To: Sawtooth who wrote (39606)	2/21/2000 8:43:00 PM
From: The Phoenix	Respond to of 45548

why would EB and the Coms BOD implement a strategy to cannibalize Coms with the planned Palm divestiture? That doesn't make sense to me, now or for the future. I maintain their vision has to be based around realizing good value from new lines of business. One would hope... but given history I wouldn't invest in a company that has shown no ability to execute in the past. the fact is - after years of no performance EB has to figure out a way to increase valuations or lose his position... I wouldn't read much more into it than that. I think he may believe that PALM will be a longer term win/going concern than COMS and PALM by itself will create shareholder value.. even if COMS fails. IF COMS Succeeds that's just gravy but there's no assumptions about COMS success in residential broadband.... JMO OG OG

To: Sawtooth who wrote (39606)	2/21/2000 9:15:00 PM
From: David E. Taylor	Read Replies (2) \| Respond to of 45548

Sawtooth: I've long thought that EB's and COMS salvation would be a buyout, since there are parts of the networking business (which MA reminds us of frequently) that in the right management hands could be valuable revenue producers. But how to sell COMS when it's trading between 20 and 30? Even with a decent premium, EB would be lucky to get 40 or so from a buyer. There are (or were before the 175 million shares exchanged over the last two weeks) a ton of COMS shareholders with a cost basis of well over 40 who would sue the heck out of EB and COMS if they got sold up the river for less than their cost basis. So how to keep everyone happy? Spin off PALM and give all COMS shareholders a nice fat bonus, then sell what's left as soon as possible for say $35/share (I do like that number!). Who's going to complain about that deal? David T.