3COM – COMS
March 27th, 2008 | 
Well here is the 1st post on something I think has a chance in the current market, 3COM symbol: (Nasdaq:COMS)
For some who have known me off of Yahoo’s “Markets Overbought” forum, I have been for the most part very Bearish since the Spring of 2007. And for the most part right on target in regards to the markets. Just about everything has taken a beating and especially in the lower tier issues that trade under $10/share.
This week I took a position in 3COM, or as I’ll refer to under its symbol: COMS. The stock trades on the Nasdaq Nat’l Market. The recent vertical plunge to the $2 level puts COMS into a very oversold condition. The movement to the downside is related to the failed buyout for $2.2 billion. It involved Bain and co., and a Chinese partner. The buyout was blocked by the U.S. Gov’t due to COM’s certain products, which the company sells and could be used by the Chinese military, etc., You can read some of this from this link:
http://biz.yahoo.com/ap/080321/3com_buyout_vote.html?.v=5
Be that as it may, the technicals appear to have reached a very oversold level, that’s what attracted me to COMS. The chart appears to indicate forced liquidation, which generally if not always produces these types of daily swings. Some indicators are not confirming the recent values, iow a failure swing, which is bullish. Therefore, I rate COMS as strong buy at this time. From all available data COMS could reverse up “in the same way that it crashed”. As far as fundamentals? Recent Q the company reported higher sales and a profit of 8 cents.
http://biz.yahoo.com/ap/080324/earns_3com.html?.v=1&printer=1
Good luck to one and all. I’d like to thank set4 for the invite to this site and hope that I might contribute a thing or two about trading, market insights, and the economy as time permits.
Good morning to one and all…eom).
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| COMS |  |  |  D | W |  5 | 3 | 2 | 1 | E |  N | PM | AH |  |
Popularity: 24% [?]
Welcome airbus! What a surprise to visit the site and see a topic that I didn’t start. I’m honored to have you here!
Very nicely done with your first post! To those wondering who airbus is, we met on yahoo forum back in 04. Since then from time to time we always seem to bump into each other on yahoo message boards. When this happens, it’s usually a very good sign!
COMS chart
Very good post and the chart.
Thanks for the welcome TSG!
The major indices finished lower for 03/27/08.
A few comments for Nasdaq:COMS. COMS had some buying pressure for Thursday March 27. It appears that someone else thinks COMS is a buy as Bernstein upgraded COMS from Mkt Perform to
Outperform today. The stock gained 5.14% in the trading session.
Many of the oversold indicators have failed to exceed the mid-February lows. IOW the low registered in March was LOWER than February lows, however the -DMI indicator, for example, and my own reverse-inverted indicator have FAILED to exceed the levels reached in February. Technically speaking, when when negative related indicators fail to surpass their prior highs, then the underlying security is not confirming, that’s bullish.
This may be premature, but early indications of the chart pattern itself could be setting up a reversal pattern. The action in February to early March is looking like a left shoulder, of a possible Head & Shoulder Reversal. Again, I stress possible. If that is the case, then the stock should rally into the $3.50 area where it may rest for a while. Another pattern possible is of the triangle class family. But either way COMS should be on one’s watch list as its clearly oversold.
On the subject of trading volume. A continued rise should bring expanding daily turnover. If we examine the chart above the high turnover occured in mid-February with a gap-down. I will label this area as the left shoulder. There was the typical high volume level that’s expected on LS. The slow slide and plunge into March 20th lows brought more trade, but it didn’t have what the February low had. I’ll label this the Head. From the March 20 low volume is expanding but not as much. It’s moderate, which is good. Volume from this point doesn’t have to be excessive, as in the prior points, which experienced forced liquidation, hence the large volume days. Therefore, let’s see what happens in the days ahead. So long as the general market doesn’t go into its fits and starts, Nasdaq:COMS should produce some decent gains ahead.
That’s all for now, Irene goodnight. eom).
I’m trying to bottom fish this one with no luck. I took a look at the weekly chart and do see support at 2.00
With a decent ‘bounce’ so far. In these markets I hate to chase, but you know how that goes. Damned if you do and damned if you don’t. These markets really got me on the fence! If it comes back down to todays lows I’m going to nibble.
It’s a T144 MS formula
e1:=Mov(C,144,E);
e2:=Mov(e1,144,E);
e3:=Mov(e2,144,E);
e4:=Mov(e3,144,E);
e5:=Mov(e4,144,E);
e6:=Mov(e5,144,E);
c1:=-.618*.618*.618;
c2:=3*.618*.618+3*.618*.618*.618;
c3:=-6*.618*.618-3*.618-3*.618*.618*.618;
c4:=1+3*.618+.618*.618*.618+3*.618*.618;
c1*e6+c2*e5+c3*e4+c4*e3;
^it’s one slow son of a gun, I mean on a weekly chart it started plotting on 10/25/05 and the data loaded on the weekly chart starts at 5/19/89 it’s slow but smooth as silk.
(ignore the skulls, performs better on daily just states Close > 13% from the T13) same formula above but with 13 replacing 144 values) -cat out of bag
Nice to see insiders buying it up!
http://www.secform4.com/insider-trading/738076.htm
Thanks TSG for the insider buys on (Nasdaq:COMS).
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I’ll 2nd that motion! The markets have been rough-n-tumble, dig deep into the trenches. Some of these stocks have been beaten up to a pulp. I do like 3Com’s potential. Hope the gods are smiling on this one:)
This is from Airbus,
3COM traded higher for 03/31/08, closing at $2.29 up 0.09 cents. The chart shows typical Fibonacci percentage retracements. Note where the 50% retracement is lodged. This is the area where (Nasdaq:COMS) can pattern build, with a mirror-image of its late February trade, sets the stock for a decent run. Three SMA’s displayed are: 200, 50, and 22 day moving averages. eom).
The markets closed higher for Thursday 04/3/08.
(NASDAQ:COMS) 3Com traded higher, closing up 0.05 cents for 04/03/08. There’s been recent insider activity on the buy side. They can be viewed here: http://www.secform4.com/insider-trading/738076.htm
Also, a Barron’s Online article for 04/03/08: Inside Scoop – “3Com Insiders Dig In and Buy In”, by Teresa Rivas, details a positive view on the company. One paragraph, however, stands out the mostest below.
Quote: ” A spokesman for 3Com says the purchases are “a clear example of the faith [the insiders] have in the company, their belief that our strategy and vision are very much designed to win in the marketplace. Obviously by putting their own money on the table to back up that belief, they anticipate it will be a good investment, and they see 3Com’s growth prospects as being strong.” End quote, Barron’s 04/03/08.
What’s important in this part is that 3Com was contacted by Barron’s. Therefore, anytime a large financial media outlet takes notice, then the markets should obviously take notice as well. This will likely appear in the weekly print edition of Barron’s Market week, “Insider Transactions” and further exposure on what insiders are doing, thinking. Sort of like Occam’s Razor — a principle that the simplest explanation is generally the best.
As far as the chart itself, a steady uptrend. At the $2.56 to the $2.69 there’s a “gap area”, where no shares traded. That’s an interesting area because it has “no vested interest”. If Occam’s Razor can be applied here, then one could expect another gap in this area – except to the upside. Since there were no shares traded in the $2.56-$2.69 zone, there’s no reason for any to trades to occur there, on the return trip upwards. It’s just a thought. If there’s a skip-n-jump over that price track, than this is the best explantion I can come up with at this time. And furthermore, if there’s an up gap, then everything below it is left as an “island formation”. But let’s not get to far ahead of ourselves, we’ll let Mr.Market decide on that probability. Otherwise, 3Com is in a bullish trend thus far and and can be held for further gains ahead. eom).
April 7, 2008. The markets are higher.
Securing profits at current levels is prudent. The stock is having a bump here, it may rest and digest. eom).
Thanks airbus for the updates!