Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jackhach who wrote (43221)	5/12/2000 3:42:00 PM
From: David E. Taylor	Read Replies (1) \| Respond to of 45548

JH: The key here is whether PALM can hold this $25 level or not. If it does, as the arb gap closes, COMS will go up to 1.5 x PALM + COMS intrinsic value. Right now the arb gap is valuing COMS at around $4, a number that clearly has to increase. But it could increase to a more reasonable $15-$25 without any upward movement in COMS if PALM can't hold $25 and continues to slide through continued selling pressure and lack of buyers. The PALM problem is the one we've had since IPO day - no volume buyers, because there's no reason to pay the market price for PALM directly when you can get it cheaper through COMS. I've been checking Thomson's on and off, and I haven't seen much institutional buying of PALM, so it's been retail buyers vs. short sellers so far, hence the 12.5 million short position. IMO, there's a good chance the short position will clear before 7/7, and if it does, both PALM and COMS should move up. I guess we'll see. David T.