I have been bearish on 3COM since it merged with Robot.
USR was a jinxed stock (OK I am not a technical analyst, or could you tell), and 3COM has inherited that jinx. Casey sold it for a good reason, and I believe this will dog 3COM for quite a while (4-6 more quarters) longer.
Regardless of how positive analysts claim to be about this stock, every pop in price has resulted in profit taking. This earnings carnival will pass through regardless of what 3COM reports, and the decline will begin soonafter.
3COM also plays 2nd fiddle to CSCO, and even though I use a USR 56k, I do not find it anything special except for being pricey (their price has been dropping a lot lately, have you noticed?).
That, in brief, is the reason for my fundamental bearishness on 3COM.
Best case scenario, 3COM beats lowered estimates, plays with the $40 mark for about 5 minutes and then sells off.
Likely case scenario, 3COM beats lowered estimates, but announces slowdown in Asia which slaps it down a la JBIL. |
