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

To: Mehrdad Arya who wrote (41618)	3/10/2000 5:44:00 PM
From: greg nus	Read Replies (1) \| Respond to of 45548

Mehrdad Arya, my take on 3com/Palm. "The sum of the parts is often worth more than the whole" to quote James Ling of LTV. James Ling was the father of the modern conglomerate. What we have, and what analist will find when they look is 3coms the network company (part A.) A company with some where between $3 billion in cash not including the Palm ipo worth $10.00 a share, plus a hi-tech company earning about $1.00 a year net of Palm give it a pe of 20,plus a growth rate of 20% give 3coms a pe of 40. So part a is the networking company worth $40.00 a share. Part B is Palm and so far palm is worth $70.00 a share and for each share of Coms you can expect to get 1.5 shares of Palm worth $105.00 a share, for a grand total of $140.00. 3coms will have more than sufficent resources in the form of cash to improve it's product line, start a hi tech jv venture capital fund, or fund R&D, all the right stuff to enable it to suceed. They will also retain acess to Palm technology I suspose through cross licsense argeements, even Cisco doesn't have this little technology gem. Eb said they plan to work closly with Palm on future opertunities, after all there just down the street.