Comments on: Open Thread: HP Buys 3Com for $2.7 Billion http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 23:28:32 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: ephone1 http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234415 ephone1 Sat, 14 Nov 2009 02:19:42 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234415 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? 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?

]]> By: JT http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234160 JT Thu, 12 Nov 2009 19:16:50 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234160 I guess that means HP is not buying Brocade...big mistake. Brocade has far superior products to 3com (Chinese junk). I guess that means HP is not buying Brocade…big mistake. Brocade has far superior products to 3com (Chinese junk).

]]> By: Badger http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234151 Badger Thu, 12 Nov 2009 18:32:35 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234151 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. 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.

]]> By: VennData http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234128 VennData Thu, 12 Nov 2009 16:56:31 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234128 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 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

]]> By: tradeking13 http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234103 tradeking13 Thu, 12 Nov 2009 15:39:08 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234103 3Com is still around? 3Com is still around?

]]> By: Stuart http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234074 Stuart Thu, 12 Nov 2009 14:19:16 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234074 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.... 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….

]]> By: Vermont Trader http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234051 Vermont Trader Thu, 12 Nov 2009 12:57:56 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234051 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.. 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..

]]> By: danm http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234050 danm Thu, 12 Nov 2009 12:45:54 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234050 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. 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.

]]> By: danm http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234048 danm Thu, 12 Nov 2009 12:44:00 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234048 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. 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.

]]> By: ToNYC http://www.ritholtz.com/blog/2009/11/open-thread-hp-buys-3com-for-2-7-billion/comment-page-1/#comment-234040 ToNYC Thu, 12 Nov 2009 11:04:52 +0000 http://www.ritholtz.com/blog/?p=43555#comment-234040 "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. “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.

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