Target: 3Com Corporation (COMS)

This beaten down networking-has-been has been made-over. While they still need a few more quarters of positive growth and cash flows to prove themselves, they are indeed a going concern again. It’s new CEO and China-centric business plan shows potential. At such low price levels, if 3Com shows some positive consistency, they will be irresistible as a takeover target.

Note on future deals: As shown in their last merger failure with Bain Capital Partners & Huawei Technologies (see: this article at TheStreet.com), U.S. Government conerns over security and the exporting of sensitive technologies will pretty much stop any international oriented mergers. The suitor next time around will have to be a U.S. company I think.

Currently trading at $2.16

My M&A Status: RUMOR

Sources:

http://seekingalpha.com/article/95450-3com-a-rare-gem…

http://seekingalpha.com/article/96792-3com-f1q09-q…

http://www.fool.com/investing/general/2008/09/23/3com…

http://seekingalpha.com/symbol/coms

http://finance.yahoo.com/q?s=com