TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, has been saying since late spring that IBM should buy Imperva because it offers products that protect other companies' critical data and applications.
The importance of cyber security resurfaced on Thursday, when it was made public that Yahoo! (YHOO) suffered a data breach impacting 500 million accounts back in 2014. If investors are going to buy cyber security stocks off of this news, they should consider Fortinet (FTNT) - Get Report over FireEye (FEYE) - Get Report , Cramer advised.
As for Imperva, it offers a great and differentiated product, one that would suit IBM better than Cisco, Cramer said. Currently boasting a market cap of just $1.4 billion, a purchase by one of these mega-companies is certainly possible.
IBM would stand to benefit the most, making cyber security a large pillar in its business foundation, Cramer concluded.
At the time of publication, Cramer's Action Alerts PLUS had a position in CSCO.