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

To: David E. Taylor who wrote (43963)	7/15/2000 5:45:50 PM
From: mr.mark	Read Replies (1) \| Respond to of 45548

"End of another lengthy Taylor missive" yes, but all good. "Wait until you see the one I'm working on!" we're not going anywhere. fire away! :) mark

To: David E. Taylor who wrote (43963)	7/16/2000 4:47:34 AM
From: Tim McGee	Read Replies (1) \| Respond to of 45548

David, while in general I agree that the Options issue will not materially affect COMS shares, it is for a different reason. This option overhang will only dilute shares outstanding when they are exercised. I expect this will take time to happen - perhaps a couple of years. I agree with you that the buyback will mitigate any near term exercised options. However, one factor to consider is that 3Com will be spending up to $1B to buy back shares and essentially still have the same number of shares outstanding (give or take 20M). This does reduce the book value of the company assuming cash flows are not intensively positive. Of course, if 3Coms' investments continue to improve then this will also become a non-issue. OH!, one more thing. Please don't use the word 'missive', it makes me go ballistic <ggg> ( I hope mr mark is not looking). Tim