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

To: Robert Griffin Gregory who wrote (43138)	5/9/2000 3:02:00 AM
From: Mark Iguchi	Read Replies (1) \| Respond to of 45548

If you plan on holding onto COMS through distribution (which I assume you are) hold onto the 200 longterm shares, as the adjusted cost basis after distribution will reflect both COMS and PALM with long term capital gains (hopefully!). Of course, you don't mention whether or not you plan on selling, and when, so I can't really formulate a strategy for you. Just hold onto the longterm shares longer than the short term shares. Average cost basis doesn't really apply here as you have two separate lots of shares, LT/ST. If you plan on having short term gains this year, and you plan on selling half of your holdings, it would make sense to choose the ST lot of shares--as it would offset the ST gains at a higher tax rate...but that's obvious, right? I too have held onto my longterm shares and am waiting for the distribution. I may write short term calls right near distribution time to protect against any slight dip due to selling pressure, but other than that...

To: Robert Griffin Gregory who wrote (43138)	5/9/2000 6:58:00 AM
From: KevRupert	Respond to of 45548

rgg, I have a biased opinion, but here is my opinion. Hold onto "palm" for the long-term, for obvious reasons. (wireless market, leader in pda, etc.) Hold onto "coms" until after the spinoff of "palm". A lot of people will automatically sell "coms" right after the spinoff. This should temporarily depress the price. I'm holding onto my post "coms", and see what the company does with the $3 billion. The buyback should boost the stock back up, and possibly make the right moves to make "coms" a long-term winner. Like I said, I'm biased!

To: Robert Griffin Gregory who wrote (43138)	5/9/2000 9:32:00 AM
From: David E. Taylor	Read Replies (3) \| Respond to of 45548

Griff: FWIW, I'm in a similar position, 1/3 COMS bought around $70 during the initial decline after the IPO (premature), 2/3 bought around $45 recently (smarter). IMO, holding in to all the COMS until D-Day is a no-brainer, if you have any belief in PALM's future in the wireless connectivity market. PALM will find it's own market level once it's freed from this artificial arbitrage tie, smarter people than you and I (like NOK/MOT/AOL et al) figured $38 was a fair price to pay for PALM. PALM at $38, with around $20-$25 for the residual COMS ($15/share in cash) would give you $77 to $82 for your present COMS. Holding COMS after D-Day is a tougher call, most people (me included) have said they have no intent to hold COMS after D-Day, but the COMS buy back adds another dynamic to that part of the spin off. David T.