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

To: Terrapin who wrote (40967)	3/2/2000 4:22:00 PM
From: Jeng Chiu	Read Replies (1) \| Respond to of 45548

Even assuming a 1:1 distribution, COMS should be at least equal to PALM if not more. There was a moronic reference made on CBS Marketwatch. Some guy named Tim Taulli was panning COMS because of the disclosure language regarding the distribution. Even assuming COMS does not distribute the shares, 95% of PALM is still COMS. There's almost a direct correlation. Assuming that COMS does not produce negative cash flow, COMS is an additional asset that PALM does not have. Therefore, COMS selling at a discount to PALM is laughable. The only rational explanation would be that people assume that when the float is increased, PALM shares will decrease to the level to make the correlation equal with some wiggle room for arbitrage. If the float is released, it would be possible that PALM would fall. However, I doubt it would decrease below the 50-60 range. Using the 1:1.5 ratio, that would equal COM's share price assuming COMS was worth nothing.