Public or Private, Qwest Wins

The Qwest (Q - commentary - Cramer's Take) story just gets better and better, yet nobody gives it any credence. The win it had Thursday to be a part of the giant contract to give the federal phone system a makeover was gigantic -- not because of the money it will make but because of the respect it conveys, particularly when you think of the Sprint (S - commentary - Cramer's Take) loss.

Qwest has a ton of debt. I say that up front because I want to concentrate on the equity "stub" for a second.

Market cap-wise, this is a $16 billion company. Sprint is a $55 billion company. Verizon (VZ - commentary - Cramer's Take) is a $100 billion-plus company. AT&T (T - commentary - Cramer's Take) is a $245 billion company.

Qwest's balance sheet is no longer in tatters. Why does this company needto be public? Why shouldn't someone buy it for the territory -- in the fastest-growing part of the U.S. Thursday we had a rumor that BCE (BCE - commentary - Cramer's Take) would be the target of private equity. Qwest would be a better deal.

This company has the chance to be very profitable in a couple of years. The numbers, I believe, are too low, with estimates at 50 cents for next year. I think you win either way.

This contract's the beginning of the "respectability" phase of what Dick Notebaert has accomplished. There is much more ahead. Even after the run this stock has had, I think still believe it's worth buying.

Random musings: The Deere (DE - commentary - Cramer's Take) bears should be overrun pretty quickly here. The corn crop's growing, but the price of corn is growing faster. ... Cat's (CAT - commentary - Cramer's Take) at last on the move. ... I've been watching Quest Diagnostics (DGX - commentary - Cramer's Take) go higher -- quietly. It's about time. ... Purchasing managers number: growth without inflation. Nice and easy for the markup folks.

At the time of publication, Cramer was long Caterpillar and Quest Diagnostics.

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