Bain Capital no longer wants 3Com

3Com Corporation (Public, NASDAQ:COMS) shares fell again today hitting $1.76 a share before ending the day down 10% at $1.95.  Bain Capital made it official and took the $2.2 billion buyout offer off the table, too bad now that 3Com is only worth $796 million.  So is 3Com worthless for investors?

The big issue besides a great buyout now gone is 3Com just can't seem to make a profit.  They've been bringing home the bacon but can't get the company out of the red:

Despite the net income, another buyer may just put 3Com out of business, it's possible now that shares are under $2.

As Forbes.com points out, analysts including Morningstar Inc.'s Alex Dannin had said there is hope to the whole $2.2 billion deal.  The companies might win approval for the deal if Bain sold 3Com's TippingPoint unit, which makes the firewalls the Pentagon uses to secure its networks. 3Com had planned to spin off the division before agreeing to the offer from Bain and Shenzhen-based Huawei, founded in 1988 by former Chinese army officer Ren Zhengfei.

The Masters are adding 3Com to our watch list because should any good news come out COMS shares are going up 5% easy on a minute's notice.

There's no reason to bet the farm, but to count 3Com dead at this point may work against traders shorting the stock.

Disclaimer: The Author holds no positions in COMS.

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