'Fast Money' Recap: Behind H-P's Big Deal

NEW YORK (TheStreet) -- Hewlett-Packard's(HPQ Quote) lit up after-hours trading with its surprising move to acquire 3Com(COMS Quote) for $2.7 billion in cash.

For the day, the Dow Jones Industrial Average rose 44.29, or 0.43%, to 10,291.26, while the S&P 500 added 5.50, or 0.50%, to 1,098.51. The Nasdaq jumped 15.82, or 0.74%, to 2,166.90.

Pete Najarian said Hewlett-Packard picked a name that wasn't on anyone's list. He said he was surprised the company is willing to pay a 35% premium for 3Com.

Karen Finerman said it was a little disappointing to Brocade(BRCD Quote), which was rumored to be one of the companies Hewlett-Packard was looking at.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Guy Adami said the bigger deal was its preannouncement of its better-than-expected earnings and revenue. He said the stock is still cheap, at 11.5 times its 2010 earnings. He sees the stock heading higher.

Joe Terranova said the trade here is to get Cisco(CSCO Quote) on a pullback to $22 to $22.50. "That's where you step in and buy it," he said.

The panelists said H-P's acquisition matches what Cisco did a month earlier when it announced plans to acquire Starent Networks(STAR Quote) for $2.9 billion.

Najarian said this is the fourth largest deal that H-P has pulled off.

Adami said Broadcom(BRCM Quote) is another name that may trade in the back of the Hewlett-Packard-3Com deal.

Jim Goldman, a CNBC reporter, said it wouldn't surprised him if IBM(IBM Quote) made a stab for Brocade or Juniper Networks(JNPR Quote). He said the deal underscores the fast-growing server market.