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

To: David E. Taylor who wrote (41445)	3/7/2000 12:05:00 AM
From: Tim McGee	Read Replies (2) \| Respond to of 45548

David I joined you in seeing only part of the situation right. My plan was to hold and re-examine at earnings announcement. But, I got out of most of my cap gain eligible positions over the past 3 trading sessions. I still have other positions and some options. This was a worse case scenario come true (in my plan), so I had to act to save some of my other positions. I do agree that things could go positive quickly on positive news but I think we've suffered too much friendly fire from our fearless leader. I'm not sure that HW/A scenario will tell us much since HP is a successful company and its CEO is not dropping carpet bombs on its shareholders. I think the market wants to hear that its expectations can be more clear, that 3Com has proven it will be ok (nxt qrt earnings) or break up, and/or that EB will ride quietly into the sunset.

To: David E. Taylor who wrote (41445)	3/7/2000 12:07:00 AM
From: Doug	Respond to of 45548

David: Thanks for a very exhaustive analysis. In this market the small Investor is forced to sell using a limit order well below the instantaneous price. The problem is to find the apparent equilibrum point in the relationship between COMS and PALM. On opening COMS was 117 PALM at 165 D day COMS was 95 Palm at 81. D+1 COMS was 80 Palm at 83. D+2 COMS was 70 Palm at 63 Using the HWP/A model, it would appear that COMS has been oversold relative to PALM. Allowing for ARB risks etc a ratio of +1.35 PALM to 1 COM looks fair at this time. Well the market is supposed to be efficient. Lets see how this pans out.?