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

To: Uchos who wrote (39761)	2/23/2000 10:24:00 PM
From: KevRupert	Respond to of 45548

Uchos, your basic assumptions seem correct. But you are asking a bit much of me to get out my calculator :) I know this isn't a fair comparison, but Nokia has a market cap of $236 billion. With all of the hype with wireless, palm has : 1) $1 billion in revenues; 2) profitability; 3) accessories & wireless programs, which will drive future earnings/revenues; 4) license revenues from firms, such as Handspring; 5) major backers in aol/mot/nok; 6) alliances with all of the major downstream firms; 7) a reference, which is worth its weight in gold in my mind, my Geoffrey Moore of palm being a gorilla; 8) the potential products and applications that we can't even envision right now, that may be offered in the future (this is a reach, but it is true). To sum my biased opinion up: I do feel that palm could trade at $100 with a market cap of $57 b. At least you know that will definately happen the first day. But I will rely upon David E. Taylor for his opinions, as I respect his thoughts on these matters. Good luck and thanks for your well reasoned, calculated post. It's just that I'm biased and I can stick my head in the sand. :) Good luck either way. Are you long 3Com? Advalorem

To: Uchos who wrote (39761)	2/24/2000 7:47:00 AM
From: David E. Taylor	Read Replies (2) \| Respond to of 45548

Uchos: There's something screwy about your numbers but I haven't figured out what it is. Mang posted a useful table which set forth the resultant price of COMS for various PALM prices (all the way to $500/share!!) and discount rates from the 1.5 ratio, using an assumed price of 30 for the value of the underlying COMS: Message 12854748 You can easily plug your own value for COMS into this instead of Mang's 30. To use your last example, with a PALM price of 50, a 28.5 billion market cap, underlying COMS at 30, and zero discount rate from the 1.5 ratio, COMS would trade at 105, vs your 69.55. Mang's numbers are correct, something's wrong with yours, maybe you can figure it out. Good luck. David T.