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

To: glennperkins who wrote (43667)	7/2/2000 3:01:42 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

glenn, I haven't studied the institution's holding of coms and palm very much but just from your research, I have the following observations: 1. 1.7% Palm institution ownership sounds right because it would be against most institution's rules to buy a stock with only 23 million shares float. Institutions had profited handsomely at IPO by selling at over $100 to retail investors and they have no reasons to buy back in thro' retail. 2. In fact they had been shorting Palm and buying coms. 3. Institutions that want to invest in Palm long-term had been loading up on coms. 4. I think coms (coms/Palm) after July 11 will go up because by then comsv (coms-without-palm) will be trading and coms will be agressively buying back its shares and any sane person would know that coms is worth more then $7 1/2 (with 8 1/2 in cash). Let's say comsv is selling at $13, then coms should go up by 4 or 5 bucks in tandem (during July 11 - 27). Unless coms jumped too high pre-record-date then it could crash back down. It's all relative. 5. coms is so cheap but why it didn't go up ? The reason is that people are comfortable with coms selling at cash but they still didn't want to jump into coms/Palm because they still had doubts about Palm's prospect. Palm was selling at 17 times sales before earning and they thought that was risky. With the release of the current qtr earning, that doubt is clear and analysts all see that Palm is undervalued at $27, the upside potential for the coms/palm combo is very good at this time because both stocks have the potential to go up and that will blow up coms like a balloon exactly like the pre-ipo frenzy. Pre-ipo we analysed the coms/Palm valuation to death and the rise to over $100 was not without reasons. The over $10 pop of coms in the last couple days was the MMs' attempts to correct the grossly undervalued situation of coms/Palm and they seem to be in a more than usual hurry to do it. They didn't even care to perform some fancy shakeouts. Mang