Cramer: 3Com Shows You the Way to Play

3Com (COMS Quote)! Holy cow, and a huge price!

To me, this moment tells you why this market's so great. Here's a broken stock from yesteryear, a beaten networking equipment company that has gotten it together, but no one cares. Except for Mark Hurd and Hewlett-Packard (HPQ Quote), because Hurd wants to have a soup-to-nuts company -- or as John Chambers would say, and end-to-end suite of products for just about every company that needs tech, including telco tech. I applaud the move, and not just because less than two months ago I pushed this one hard after a really good quarter.

This COMS deal says what I keep saying -- this market has so many ways to win: takeovers, earnings, analyst revisions, recommendations. They are all working. Yet the negativity continues. As does the shorting.

Recently I did a spoof of the bears and got my head handed to me in email with some very prominent bears lambasting me for making fun of them in particular. It was bizarre. I had no one in mind at all ... touchy group.

I just wish they would take into account the micro evidence. Companies like JDS Uniphase (JDSU Quote) or ADC Telecom (ADCT Quote) or Tellabs (TLAB Quote) or RF Micro Devices (RFMD Quote) or Skyworks (SWKS Quote), they are all too cheap. They are languishing. I think the H-P buy of 3Com is a wakeup call to all of the inexpensive tech stocks that are languishing -- your time of non-independence will soon be upon you.

A couple of people have pointed out that the futures barely budged on the news. I get that: tomorrow we get oil inventories (and oil controls about half the market) and jobless claims (and that's about the other half). Without those two pieces of data, the market's flying blind. And if you are just playing with the S&P futures, I can't blame you for not knowing what to do.

But I think COMS points the way. Once again an undervalued company is getting swallowed up. In this tape, there are hundreds of them ... many of them shorted!

Random musings: I have been saying that with booming orders for the semiconductors, even though people don't believe in Intel (INTC Quote), the big orders for the semi equipment companies are right around the corner. The numbers from Applied Materials (AMAT Quote) indicates to me they are here.

At the time of publication, Cramer had no positions in the stocks mentioned.

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