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).