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

To: Bill Cotter who wrote (43914)	7/14/2000 8:26:06 PM
From: kcmike	Respond to of 45548

<<Here is a way to beat them at their games. On Monday morning you buy 1000 shares of COMS at 73.625 = 73,625. At the same time you sell short 1,484 of PALM at 45 7/16 = 67429.25. Your cost for COMS is frozen at 73,625 - 67,429 = 6,196 or 6.20 per share. When the shares are issued you sell them and buy to cover your short sale (net zero) and your cost basis is 6.20 per share for 1000 COMS. >> Bill, If it were that easy, we would all have done that already! The logic is perfect, the execution is the problem. None of the brokers I have will allow you to short PALM. You can't even borrow the shares that you will get in the distribution. If you have a broker that will let you short PALM, can you let us know? We'll all sell the farm! Mike