3Com

Is 3Com going to spin off it’s cash cow again? (last time it was Palm). Research shows that recently hired TippingPoint (a 3Com company) President Alan Kessler was once hired as Palm’s president in 1999 by 3Com when it still owned Palm.  Three months later, 3Com spun off Palm. Now he’s back at another 3Com subsidiary (which many think is ripe for a spin off).

Me thinks TippingPoint is going to be sold off, despite what COMS says it it’s recent press release on hiring Kessler.

Spinning off Palm last time turned out to be a great deal for 3Com, since they got some serious internet bubble cash from the deal.  Do the 3Com execs see TippingPoint at the height of its value (like Palm was) and are looking to sell this little cash cow?

My opinion is that COMS is still as a takeover target (see my post here) and as such, unloading assets to boost cash would make the company’s balance sheet rosier.  However, TippingPoint is one of the few reliable positive cash flow streams COMS has right now, and would hit the Income Statement and Cash Flows in a negative way.  I guess the COMS bean counters know.

Are the 3com execs still in dismantle and sell mode, or grow and expand mode (as the new China-based efforts point to)?  Either way– COMS stock price still looks attractive to me (currently under $3 a share).