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

To: Rajiv who wrote (43946)	7/15/2000 12:22:38 PM
From: schlep	Read Replies (1) \| Respond to of 45548

thread: can anyone tell me how we all will calculate our cost basis for the PALM dividend shares we receive? Also, how will we adjust our COMS (sans PALM) cost basis? thanks, -schlep PS - i know we will receive info in the mail, but if anyone can provide info now, all the better

To: Rajiv who wrote (43946)	7/15/2000 12:54:18 PM
From: twillowy	Read Replies (2) \| Respond to of 45548

Rajiv, thanks for your thorough analyses. It illustrates accurately what the dilution effects are. What are the chances that PALM will be admitted to S&P500 index prior to 27/7? Remember HWP/A spinoff? Agilent has been included in SP500 index prior to their distribution. I hope that they will do the same with PALM. Regards, twillowy

To: Rajiv who wrote (43946)	7/15/2000 1:02:50 PM
From: kcmike	Respond to of 45548

Rajiv, Tremendous explanation! Thanks a ton! Mike

To: Rajiv who wrote (43946)	7/15/2000 5:24:20 PM
From: David E. Taylor	Respond to of 45548

Rajiv: Excellent and thoughtful post. I did a similar "what-if" exercise on the COMS/PALM prices on 7/27, but my post got so long I decided to leave that aspect for later! David T.

To: Rajiv who wrote (43946)	7/15/2000 9:05:07 PM
From: jfs	Read Replies (1) \| Respond to of 45548

Rajiv, Great post. I get a different conclusion, though, thinking about your very last sentences. <Moreover S&P 500 is market-cap weighted. At the next rebalancing, COMS' weighting will get reduced which will in turn cause the index funds to unload part of their holdings.> Won't the drop in market cap be taken care of by the Palm distribution and (presumably) sale? An index fund's COMS holding will be reduced by a factor of 5 or 6 by this alone? Am I missing something? Regards, John