Cramer's 'Mad Money' Recap: The Sum of H-P's Parts

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All the core bits of computers have been "crashing in price," Jim Cramer told viewers of his "Mad Money" TV show Thursday. And all tech shortfalls spell one thing: "There will be a major upside surprise coming on May 16 for Hewlett-Packard (HPQ Quote - Cramer on HPQ - Stock Picks)."

Tech companies are imploding, but H-P, which Cramer owns for his charitable trust, Action Alerts PLUS, is a stock he likes.

H-P, he explained, doesn't sell chips or motherboards -- or any other computer parts. Instead, it buys these parts from other companies so it can sell computers and printers, Cramer said.

Even though it's not the right season to be in tech, not all tech stocks are created equal, he said. "Don't confuse the forest (tech) for the single tree (Hewlett-Packard)."

With H-P, investors have "a great margin story," because even though all of its computer parts suppliers are charging less money for their products, H-P is not selling its computers for any less, Cramer said.

He believes that HPQ should have a better-than-expected quarter and that people should get in before it reports after the close on May 16.

Cramer said he is predicting this is because the company's costs have dropped; it charges pretty much the same price for its products; and the analysts haven't noticed and so haven't increased their estimates.

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