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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (78649)	3/27/2000 5:27:00 PM
From: Knighty Tin	Respond to of 132070

Barb, I have trouble with this one as I don't understand why anyone would want one of these next to useless Palm computers. But, the simple fact is they do and the fad seems to be here for awhile. I have never been a Coms fan, but the networking business and the modem business are not negigible holdings. I consider them worth about $10 a share and the market has often valued them far north of that price. So, it doesn't look like much of an arbitrage to me. However, if the tax free distribution didn't fly, it would be a great arb, not a risk, as Coms would crash and burn on the announcement.

To: Mama Bear who wrote (78649)	3/27/2000 11:07:00 PM
From: Mark Marcellus	Read Replies (1) \| Respond to of 132070

It seems there is about 16 points there for the taking, plus perhaps a few points for any residual value COMS may have after a spinoff. I understand the risk would be that the ruling is to not allow a tax free spin off, or that COMS decides not to spin it off. Am I missing anything? Float on PALM is thin, you could have your shares called, especially if there's a big spike in price. If COMS' price doesn't track the move up, you could be left holding the bag. There have to be a lot of people doing this trade (I thought of it, so it must be really obvious) so I'd have to say that there's a decent chance it could happen, either through manipulation by sharp operators, or through normal market stupidity.