Wow, I did not see that one coming!
Anything else worth discussing?
What say ye?
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In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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November 11th, 2009 at 7:20 pm
This will be a strong a brand for them as DEC is right now!
Honestly, 3com just got a much bigger channel for whatever it is they still sell. Can’t work out too badly. Cisco and HP are already pissed at each other.
November 11th, 2009 at 7:50 pm
COMS has been under the radar for years.
Expect more aquisitions in this space.
STAR last month, COMS this month, LXK next month.
November 11th, 2009 at 7:52 pm
In Surprise, Lou Dobbs Quits CNN
http://www.nytimes.com/2009/11/12/business/media/12dobbs.html
Months ago the president of CNN/U.S., Jonathan Klein, offered a choice to Lou Dobbs, the channel’s most outspoken anchor. Mr. Dobbs could vent his opinions on radio and anchor an objective newscast on television, or he could leave CNN.
For a time, Mr. Dobbs did tone down his TV rhetoric, but on Wednesday Mr. Dobbs made a more drastic decision: He chose opinion.
Mr. Dobbs told viewers that he was resigning from his CNN job immediately. Sitting before an image of an American flag on his studio set, he said “some leaders in media, politics and business have been urging me to go beyond the role here at CNN and to engage in constructive problem solving as well as to contribute positively to the great understanding of the issues of our day.”
He remained vague about how he would contribute “to the national conversation,” saying that he was considering “a number of options and directions.”
The abrupt announcement caught even some of his closest staff members by surprise. They were told about the decision only hours before Mr. Dobbs’s 7 p.m. program. CNN said it would name a replacement for Mr. Dobbs on Thursday morning.
Mr. Klein said in a statement that “Lou has now decided to carry the banner of advocacy journalism elsewhere.”
November 11th, 2009 at 7:52 pm
watch this combo HP+3com
http://mcpmag.com/articles/2000/09/19/hp-3com-partner-on-notebook-bluetooth-computing.aspx
be driven through this door
http://mobihealthnews.com/996/interview-continua-health-alliance-president/
http://clusty.com/search?input-form=clusty-simple&v%3Asources=webplus&query=continua+ecosystem
ht tp://w ww.hoise.com/vmw/09/articles/vmw/LV-VM-09-09-33.html
just a different facet of the 168. Track n’ Trace ‘Economy..
November 11th, 2009 at 7:54 pm
You got to figure Buffet’s deal last week and this deal are a sign that the recovery is for real.
November 11th, 2009 at 8:14 pm
“Detroit, Detroit, it’s a helluva town.
The crime is up and the temperature’s down.
The bums are food for the CHUD underground.
DETROIT! DETROIT!”
- DARKMITE8
http://www.chud.com/forum/showthread.php?t=114113
November 11th, 2009 at 8:15 pm
Another merger, and, as with every other merger, I want to scream: where the f**k is SEC???!!!
According to ZeroHedge,
“…someone bought 3 times the open interest in November $5 calls and 15 times the open interest of the December calls. In summary: 3,961 Nov $5 calls were purchased today (964 open interest) for $0.65, as were 3,269 December $5 Calls (210 open interest) for $0.85. The profit, assuming the insider action was by one entity, is about $870,000 on the Novembers and $650,000 on the December strikes, for a not too shabby illegal daily P&L of $1.5 million.”
http://www.zerohedge.com/article/15-million-blatant-insider-trading-profit-following-3com-acquisition
November 11th, 2009 at 8:32 pm
Big will buy out Small…and they have the “conserved CASH” to do it (given the low interest rate by Fed) and BIG will BECOME BIGGER…as they buy out the small with their conserved cash.
And the layoffs will keep coming as BIG become Bigger and their “conserved cash” allows them to prey on the smaller fish.
Hey…maybe this is good. But it reminds me of the VC’s who bought out during the ’90’s who looked good in buy outs for their stockholders and the Board and Investors…but …in the end the companies they bought out were pillaged with “lay offs of jobs” and the new Company was weaker with the consolidation and the “end product” never fulfilled the new investors, BOD’s and the VC’s dreams. But they Kept on Keeping on.
We are now back to this failed system? The Sharks swallowing the Small Fish…and in the end…the Shark dies when it can’t find more small fish?
How does this merger help anyone? Traders and VC’s and those who got the “Whisper Call” and could get out there ahead can buy a Mansion in Greenwich, CT.
But…HOW DOES THIS HELP our AMERICAN ECONOMY? AND, what does it do to the JOB LOSSES?
(forgive my “Full Caps”) EMOTION!
November 11th, 2009 at 8:38 pm
That Detroit link and the homeless makes me think…
Some people lose their jobs and find another.
Some unemployed don’t find another job and move in with friends/family.
Some unemployed don’t have friends/family who can take them in.
Some unemployed become homeless.
Some unemployed or homeless get sick and can’t afford treatment.
Some unemployed or homeless can’t afford to eat decent food.
Some unemployed or homeless get weak and die.
It’s happening all over the country. One statistic at a time.
What are the Wall Street welfare queens going to buy with their bonuses this year?
We’ve been dropping money out of a helicopter hovering over Wall Street, into the hands of the people who already profited the most from the housing bubble and have as much or more culpability than anyone. Why is that helicopter not flying around the country and dropping equal amounts of money everywhere?
Why is our government helping banks hold back an avalanche of foreclosures, creating an artificial supply shortage, and encouraging some people to become debt slaves by buying houses at prices higher than a normal market? Why are we increasing homelessness while maintainable structures are left to rot?
November 11th, 2009 at 8:42 pm
May a financial simpleton ask a some simple minded questions of you guys?
what happens if rates in the ROW start moving up and ours stay where they are now? does that help us or hurt us?
does the carry trade mean foreigners are borrowing USDs to invest in their countries or here in the USA? or what?
does the carry trade help our TBTF banks?
does it help our economy?
TIA
November 11th, 2009 at 8:53 pm
@Bud Fox Says:
November 11th, 2009 at 7:54 pm
You got to figure Buffet’s deal last week and this deal are a sign that the recovery is for real.
——–
Yeah, “Bud.” CNBC was saying that very thing today. And, if CNBC says it…it’s for REAL.
GOLDILOCKS ECONOMY….It’s a good thing for us.
November 11th, 2009 at 8:58 pm
HP did not have a choice but to buy a LAN vendor. Cisco launched their blade server in direct competition with HP, Dell and IBM. The figth is for the data center space and HP has decided to take the war to Cisco also. I would expect Dell to either acquire or sign very strong partnerships with another LAN vendor.
I was surprise it was 3Com mostly because in my opinion there is better technology out there. Having said that 3Com is very strong in China and emerging markets where the growth is.
I would expect Vmware and Citrix to be next (Cisco-Vmware) and (HP-Citrix) may be? This would be a move to try to offer Virtualized data centers. Also, keep an eye on SANs (storage area networks) as another candidate for acquisition. JMHO
November 11th, 2009 at 9:02 pm
@KJ
If our rates stay low cheap dollars will be borrowed to invest in other higher yielding currencies, commodities and equities. This is one of the main reasons world stock markets and other ‘risk’ assets are going up.
The carry trade is in full force using the cheap $$ to buy anything, cash is trash. All this helps the trading desks of the TBTF banks, who have access to the cheapest money.
It helps to inflate all assets in an attempt to avoid deflation. The economy may benefit since the dollar will say low vis a via other currencies which will assist any US exporters.
November 11th, 2009 at 9:08 pm
@Robespierre Says:
November 11th, 2009 at 8:58 pm
HP did not have a choice but to buy a LAN vendor. Cisco launched their blade server in direct competition with HP, Dell and IBM. The figth is for the data center space and HP has decided to take the war to Cisco also. I would expect Dell to either acquire or sign very strong partnerships with another LAN vendor.
I was surprise it was 3Com mostly because in my opinion there is better technology out there. Having said that 3Com is very strong in China and emerging markets where the growth is.
————-
Your perspective is what we should be thinking about… It’s “BIDNESS” and while some of us might think things are “OTT” we gotta keep our heads on straight and think more strategically.
Still…should we not have our RIGHT TO RANT against this “FAILED SYSTEM?”
But, it’s good to hear your view. I’ve been a user of HP and a loyal customer with all my computers. I actually like them …if one can feel “cozy” towards a company. I guess it’s because they were always “user friendly” and designed their products that way. That meat something to me in loyalty.
Just saying…gotta take the good reasons for this merger along with the dark political reality we live in these time.. Sometimes one seems to outweigh the other to get back into balance.
November 11th, 2009 at 9:17 pm
TakBak04 Says:
“Your perspective is what we should be thinking about… ”
Don’t get me wrong I agree with you most of the system is rotten to the core because of the governments we have “elected”. Hey I don’t use the moniker “Robespierre” for notin
This however is a very defensive/offensive move that HP needed to do to put Cisco on notice. Believe me I have competed against Cisco and they are very formidable opponent regardless of their products (contrary to popular opinions they are not the best on every thing).
November 11th, 2009 at 9:25 pm
The most interesting thing I’ve seen on the internets in the past few days…a guy tries to sell a 1 ounce pure gold Canadian maple leaf coin in San Diego for 50 bucks, and not one American even tries to buy it from him, preferring instead to hold onto their worthless dollar.
http://contraryriches.blogspot.com/2009/11/stupid-americanoswont-pay-50-bucks-to.html
November 11th, 2009 at 9:37 pm
Ain’t it a beautiful kick in the head watching Darwin’s survival of the fittest in full effect.
Les jeux sont fait, mes amies..marque vos places. It’s Rick’s Americaine Café all over again.
November 11th, 2009 at 9:42 pm
@Robespierre Says:
November 11th, 2009 at 9:17 pm
This however is a very defensive/offensive move that HP needed to do to put Cisco on notice. Believe me I have competed against Cisco and they are very formidable opponent regardless of their products (contrary to popular opinions they are not the best on every thing)
——-
I hear ya! And thanks for your analysis of HP’s strategy. I noticed HP took a hit on the first news of this…but in the end it might work out for them. And, as I said…I do grudgingly like HP…because of that loyalty thingy. I would like them to survive. I just hate to see the job losses from the merger.
Peace!
November 11th, 2009 at 9:55 pm
http://www.ritholtz.com/blog/2009/11/qotd-bankers-must-take-resposibility-for-own-mistakes/#comment-233706
Macy’s Inc. fell 8.1 percent to $17.86. The second-biggest U.S. department-store reported a third-quarter loss and forecast full-year earnings that trailed analyst estimates as sales fell.
November 11th, 2009 at 9:57 pm
As for deals, This: http://www.bloomberg.com/apps/news?pid=20601109&sid=acx.KLD9d_fo&pos=14
is a good deal. Google’s Schmidt Says AdMob Will Expand IPhone Ads. Expanding the empire for Google.
November 11th, 2009 at 10:00 pm
@Thunder
That’s been happening for years and years. It’s amazing, just right out in the open.
November 11th, 2009 at 10:15 pm
@ investorinpa
Send him my way. For $50, I will buy every “1 ounce pure gold Canadian maple leaf coin” he can produce. The stupidity of the average American is absolutely astounding.
This just in: Lou Dobbs resigned, effective immediately, from CNN this evening. I think he has political aspirations…
November 11th, 2009 at 10:34 pm
http://news.yahoo.com/s/ap/20091112/ap_on_bi_ge/us_state_budgets
November 11th, 2009 at 10:47 pm
Future surprises from the Antarctic:
http://www.realclimate.org/index.php/archives/2009/11/is-pine-island-glacier-the-weak-underbelly-of-the-west-antarctic-ice-sheet/#more-1398
And we may need energy in the future other than hydrocarbon based (Peak Oil & rising CO2)
http://www.guardian.co.uk/environment/2009/nov/09/peak-oil-international-energy-agency
For CO2 effects read six degrees:
http://www.powells.com/biblio/1-9781426203855-5
But there is hope, but so far not enough leadership:
http://thoriumenergy.blogspot.com/2009/11/lftr-and-msrs-achieve-doe-nes-goals.html
November 11th, 2009 at 11:16 pm
@Steve Barry:
Rahspect, mon.
November 12th, 2009 at 12:25 am
Man, gold seems to be making a new high every few hours today..this is crazy! it was at 1122 a little bit ago…
November 12th, 2009 at 1:25 am
Gold is making me panic as well. May be i will take small exposure through etf and think about converting into physical gold over the time. Awareness about central bank policies is giving more strength to gold. One can confidently hold physical gold in long run.
November 12th, 2009 at 4:49 am
wunsacon Says:
“We’ve been dropping money out of a helicopter hovering over Wall Street, into the hands of the people who already profited the most from the housing bubble and have as much or more culpability than anyone.”
Well put.
November 12th, 2009 at 6:04 am
RE: Maple Leaf
I wonder who is more ’stupider’. A person buying, on the street from a complete stranger with a mic, a ‘gold’ coin or those who think that buying a pig in a poke is intelligent.
What assurance did he give her that the coin was real?
I’d certainly be asking for something that assures me of the authenticity of the damned thing before giving him a nickel.
With all the cons that are out there now, wouldn’t anyone with half a brain, do the same?
November 12th, 2009 at 6:04 am
“Think! How the hell are you gonna think and hit at the same time?” (the great Yogi). I think he was speaking of the blah-blah, talking about trading.
Gold is no mold: a symbol, as useful as the masses feel the need to reflect on it. When life spurts are real and small business gets some credit through targeted tax credits to those not wasting time looking for the contracting supply of “jobs” instead of that credit being ripped off by the TBTL crew, the symbol part of the price tarnishes. Might as well reflect on the boulders in the platform level at Chase Manhattan Plaza nicely provided by the original Davey.
November 12th, 2009 at 7:44 am
Too much supply/capacity out there. Over the next few years we’ll see a lot of bankruptcies/consolidation.
And a lot more job losses. The economy will reshape itself whether our leaders try to stop it or not.
November 12th, 2009 at 7:45 am
what happens if rates in the ROW start moving up and ours stay where they are now? does that help us or hurt us?
————–
No matter what happens, America is losing purchasing power.
November 12th, 2009 at 7:57 am
COMS has lots of SGA that can be taken out and lots of cash so deal not as dillutive to HPQ as it appears given stand alone COMS numbers.
If i were a COMS shareholder i might be disappointed with the takeout value given they have just gotten the thing turned around.. but COMS is just to small to compete against CSCO and Huweii.
I had lunch with Mark Hurd at an NCR analysts day in 2002. i was impressed with him then and bought HPQ shares when he took over and have owned them since..
November 12th, 2009 at 9:19 am
someone saw it coming.
http://market-ticker.denninger.net/archives/1615-Blatant-Insider-Call-Buying-COMS.html
And the insider trading activity today:
There of course was every reason for nearly 4,000 $5 front-month calls, with nine days remaining, to trade against this issue and an open interest of less than a thousand today.
Those 4,000 calls appear to have recorded (assuming the price rises immediately to close to the deal price) a roughly $2.10 profit each, and since each call is 100 shares, someone made $840,000 due to their “prescient” knowledge that they should buy these $5 calls which, I might add, were more than a half-buck in the money and had nine days left to expiration.
If you believe that’s a coincidence I’m Santa Claus.
The scam factory continues unabated….
November 12th, 2009 at 10:39 am
3Com is still around?
November 12th, 2009 at 11:56 am
U.S. Deports Lou Dobbs
“…Luis Miguel Salvador Aguila Dominguez, alias “Lou Dobbs,” is escorted by DHS agents to the airport to be sent back to Mexico…”
http://www.theonion.com/content/news/u_s_deports_lou_dobbs
November 12th, 2009 at 1:32 pm
My biggest question is how this affects Adtran. Telco is more their primary vertical, but they have a nice line of routers in the SMB segment.
I’m still trying to figure out how 3Com adds to HP. HP already had the ProCurve line of switches which I think enjoy pretty decent market share. They bought Lefthand for the SAN segment. It appears just to be higher end routers. Nortel would have been just as good of an acquisition there, and they would have added a large telco vertical to exploit. Someone above mentioned 3Com being big overseas. That must be the case, because domestically, there seemed to be better partners.
November 12th, 2009 at 2:16 pm
I guess that means HP is not buying Brocade…big mistake. Brocade has far superior products to 3com (Chinese junk).
November 13th, 2009 at 9:19 pm
Here’s what HP wanted out of 3Com – more exposure to China and 3Com’s VoIP phone system. HP has had bette core network gear for 10 years. Plus this gives HP a much larger percentage of the worldwide network equipment market share – which is a shot over Cisco’s bow.
Will it work? I have no idea?