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

To: Robohogs who wrote (43219)5/12/2000 3:15:00 PM
From: jackhach  Read Replies (1) | Respond to of 45548
 
As I see it -- and I'm admitting a lack of sophistication in the ARB arena, but would it not be likely that we get a run on COMS to the mid/high $60's immediately before 7/11. Whereupon we will see some legit shorting bringing the stock down to possibly half again into the $30+ range.

The shorts would then have to cover at prices not all that far below/near where we are presently, that is, down into the $40's and maybe the high $30's. We would also presumably be seeing 3COM enter into play with its $1 billion buyback of 3COM shares.

Someone please help me with clarification here -- should I need it.

-JH



To: Robohogs who wrote (43219)5/13/2000 6:18:00 PM
From: David Lawrence  Read Replies (1) | Respond to of 45548
 
>>You will sell the COMSv, it won't settle until split date.

I believe you are incorrect. You are selling the when-issued security and it will settle on the 3rd business day just like all other transactions. However, it's a covered short by virtue of the long COMS position (assuming the seller holds one), so if executed properly it should not require margin.

I'll gladly stand corrected.


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