Stocks To Watch On HP's 3Com Buy (BRCD, CSCO, CTXS, JNPR)
November 11, 2009 7:03 PM
Hewlett-Packard's $2.7 billion purchase of 3Com (Nasdaq: COMS) puts several other technology names, not the least of which is Brocade Communications (Nasdaq: BRCD). Brocade is trading down 5% in after-hours trading on news of the HP buy because Brocade has been seeking a suitor for over month and many so-called experts had prognisticated HP could be a buyer of Brocade.
Analysts are also speculating IBM (NYSE: IBM) may have to respond to HP's 3Com purchase and that could put Brocade and Juniper Networks (Nasdaq: JNPR) because IBM already has partnerships with both firms.
Citrix Systems (Nasdaq: CTXS) could be another name worth watching and of course Cisco (Nasdaq: CSCO), one of the most voracious acquirers in corporate America, may do another deal because HP is making inroads into the networking business which Cisco dominates.
