Merck, JDSU Should Follow Lead of H-P

Stock quotes in this article: SGP , HPQ  

Ray Gilmartin of Merck(MRK Quote) and Kevin Kennedy of JDS Uniphase(JDSU Quote), listen up, there's good news: You, too, can have your stocks jump 10%, just like Hewlett-Packard(HPQ Quote).

But then there's the bad news: You have to leave to make it happen. Oh, and if you disagree with me, do you know anyone else who called an instant move to $22 if Carly were fired?

Carly Fiorina was a divisive force, one that could hurt any company. Gilmartin and Kennedy, of Merck and JDSU, both are convivial, go-along-get-along guys.

Unfortunately, their situations don't call for that kind of guy. They call for tough guys who can make something happen. For Merck, they need a seasoned, litigation-oriented and -understanding CEO. I would, if I were Merck, merge with Schering-Plough(SGP Quote), which may be the best way to get that company's CEO, Fred Hassan.

JDS Uniphase? That's a case where someone came in who looked the part, walked the part and talked the part. But Kennedy, late of Cisco(CSCO Quote), is proving to have the Cisco tarnish all over.

JDS Uniphase needs to rationalize its holdings and rationalize them fast. It has the cash on the balance sheet to take the charges and sell the businesses that make this company a fiber optic play. It hasn't done so because the medicine hasn't been taken. I no longer think that Kennedy can deliver the medicine.

Both of these companies would see their stocks rewarded instantly if their CEOs left. Boards, are you listening? Kennedy and Gilmartin, are you listening?

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As originally published, this story contained an error. Please see Corrections and Clarifications.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to jjcletters@thestreet.com. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."

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