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Cramer: I've Done the IBM Homework For You

NEW YORK (TheStreet -- Debra Borchardt: Jim, we are in the thick of earning season. IBM (IBM) came out with their earnings. Not bad. Now, when you look at the chart of the stock, the stock has been making a steady climb up, so is there still some steam, some room to move here?

Jim Cramer: Yes. I think this was a remarkable quarter. It also puts to rest this notion that unless you have phenomenal revenue growth, you shouldn't own this stock. People have to go over this conference call. They're doing okay sells, not great, but they are making fortunes with the sells. You take software, 90 percent gross margins.

Take all of these different acquisitions, they're slotting them in, they're really growing. You take what I regard as being the true emerging markets and you see that the growth in the emerging markets is extraordinary. You have a company that had set a very ambitious goal that a lot of people scoffed at five years ago that that they could earn 20 bucks by 2015. Now, I think that, that's not even a stretched goal. I think that's easy. Why? Because they have the products that a lot of companies want. They offer a tremendous level of service and if business actually picks up world wide, you're going to see the sells number climb. They are a bit of a GDP play. When the number came out a lot of people were saying, "Why is that company going up? Didn't they just miss?"

Debra Borchardt: Right. People seemed surprised.

Jim Cramer: You know the notion of missing and I have been commenting on this quite a bit in Real Money and also Mad Money, missing is something that you can't determine until you've done a lot of work. It's no longer like IBM misses. There are a lot of stories about Google (GOOG)missing. Google didn't miss. The metric that we needed to see, which is how they're doing in mobile was good. The cost of acquisition, they were good, so don't be so lulled into thinking that a headline is going to produce a trade. McDonalds (MCD)a number that is better than expected but the guidance wasn't there.

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