Just when we had forgotten why we paid such high prices for stocks a few months ago, we get reminded by ArrowPoint (AWPT) , Ancor (ANCR) and Verio (VRIO) what the game was all about.

All three of these companies just got bids by respectable players in search of dominance. They got bought because they had a value to someone else. No, not to a mutual fund or a hedge fund or an index fund. They had value to other businesses that needed them. These businesses paid huge prices to get these companies.

So often, when we are frustrated by what is happening in the markets, we forget that these pieces of paper represent businesses that could be valuable to other businesses. The notion of enterprise value has often surfaced during such bear phases like the one we are in, jarring everyone out of his or her funk. It looks like the prices have been brought down enough again to start these merger discussions going.

When we left the office on Friday, we thought we would see takeover bids for foods and drugs. We didn't think we would see them in tech.

Maybe everything has gotten too low and tempting to corporations in the last few months. That's good for the bulls. And a nightmare for those who would still short stocks down here.

Random musings:


published some hatchet job on


(CSCO) - Get Report

. I didn't bother to read the article. I am just going to buy the stock.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at