Fred, >I would love to know how many people who are currently negative on the deal would still be negative if COMS goes to 50-60 in the next couple months. I'm sure they would be saying what a great idea this merger was.<
Fred, the point is that even short-term, no-one likes to see their USRX or COMS stock drop another 10% on top of recent beatings. Further, USRX is now tied to 3Com, whose stock hit a new 52-week low on Monday. IBD's relative strength number (1-99) is 5 for COMS and 19 for USRX. IBD's Earnings rankings (1-99, 99 is best), are 99 for both COMS and USRX. Go figure.
I think that the merger will probably work in the long-term for both companies, and I don't pretend to know more than Casey and Eric B. However, short-term there's no doubt that it has hurt the stock price. I guess it just hurts to see USR "cash in the chips", when they have been doing so good in all product lines: Total Control Hubs seem to be doing fabulous, x2 modems are flying off the shelves, the little Pilot is even doing well. USR was an undisputed leader with visionary management. Now all these product lines will be managed under the 3Com umbrella, and well what the heck, it marks the passing of a wonderful era. Perhaps that is the most difficult thing to accept.
DK |
