Buy BEA Systems Before It Gets a Bid

Buy BEA Systems (BEAS - commentary - Cramer's Take). That's my takeaway from SAP's (SAP - commentary - Cramer's Take) strange purchase of Business Objects (BOBJ - commentary - Cramer's Take). Why BEAS? Because the Business Objects acquisition by SAP shows a level of desperation that makes me feel that all that matters is that another wave of consolidation is about to take place.

Business Objects is effectively an American company, despite its location in France. Almost two-thirds of its revenue comes from here. SAP can pour on the strong euro and make things happen here that no domestic company can.

So why BEAS? Because BEAS is a direct competitor to Oracle (ORCL - commentary - Cramer's Take), which is the worldwide nemesis to SAP. If you go listen to the Oracle conference call where they make fun of BEAS, you have to be thinking that if SAP combined the strong -- and I think wildly overvalued - euro with BEA Systems, the Oracle competition won't look as steep as it does now.

BEAS, of course, says it is not for sale. It is still one more company that is stupidly ignoring the buildup of stock by Carl Icahn. My prediction: This ridiculous acquisition of the just-now blowing up Business Objects, a company that was getting its butt kicked, presages another buy from SAP of BEAS, regardless of the sinking in price of SAP's stock, something they knew would happen and did the deal anyway.

BEAS is cheap, with lots of cash and a burgeoning business in China. Business Objects was a much tougher sell.

BEAS is next, in my opinion, and the fact that it hasn't gone higher yet with Icahn's buying is the real opportunity.

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

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