There's a Lot to Like in the Hewlett-EDS Deal

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The more I examine the Hewlett-Packard(HPQ Quote)-Electronic Data Systems(EDS Quote) merger, the more I like it.

I was quick to presume that it means that HPQ's growth was stalled and that all could be gotten out of the turn had happened. But when I read through all of the research and reconsidered the conference call, I could see that Mark Hurd is trying to duplicate the winning IBM(IBM Quote) model and making it so his global reach will be that much stronger.

This also is a terrific opportunity to raise growth for HPQ and margins at EDS. The latter was so cheap because its gross margins were awful and its growth nil, another reason why, instinctively, I didn't like the deal. But given the makeup of the company and how much it looks like Accenture(ACN Quote), which is a total winner, you can make the case that it can augment HPQ's big systems business.

I still wish, in the short term, that it didn't happen, for purely stock-trading reasons. I presumed a great quarter, big dividend boost and larger buyback, and now we have a host of other integration issues.

Still, I get it. And it sure has worked out well for IBM, which has become the tech model to emulate in an era of intense globalization.

Random musings: Broadwind keeps chugging -- it's still my favorite wind play, but I sure wish it weren't Bulletin Board. ... Liz Claiborne(LIZ Quote) was supposed to be an upside surprise. But that was just the usual nonsense. I went through the quarter last week and can't find a reason to buy it. ... Don't trust that Texas Instruments(TXN Quote) upgrade. No catalyst whatsoever.

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