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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: kumar who wrote (28922)7/26/2000 2:29:55 PM
From: w molloy  Read Replies (1) | Respond to of 54805
 
The 3COM thread, and particularly the David W Taylor posts,
analysed the behavior of the HP stock price to predict the behavior of 3COM price at various stages of the spin off process.

A simplistic example - 3COM exploded to well over $100 after PALM IPO'd , before falling right back to just below its current levels. An astute trader could have made a nice wad by following the trend,and still keep the all important distribution rights.

Based on that example, one might be loading up on QCOM now;
unload QCOM around the time SpinCo IPO's and load up again after the price falls, but before the distibution od annouced.

I'm sure more sophisticated startegies will be discussed
on the other threads.