It's Growth and Execution That Matter

Cramer responds to fans of 3Com and Oracle.
Author:
Publish date:

This must be a month of Sundays -- both

3Com

(COMS)

and

Oracle

(ORCL) - Get Report

are up.

I hesitate to go to my mailbox these days because the "I love 3Com/Oracle at all costs" fan clubs are bludgeoning me with letters asking what is wrong with these stocks. I am rooting (and I typically reserve that for

Veterans Stadium

) for them to go up, if only to take the pressure off me. I can't imagine what it's like to work at these companies.

So why don't I help get these companies up by buying them? Why don't I sop up the supply? Because neither company is executing well. Remember the mantra: growth and execution. You have to have both. To me,

Cisco

(CSCO) - Get Report

, which I have been buying all morning into the weakness, has both. 3Com may have neither.

I don't want to touch any company that is executing poorly or not growing like wildfire. Call me a pack animal, but every time I buy something that isn't executing properly, I get stuck in a

Humana

(HUM) - Get Report

or an

Ericsson

(ERICY)

.

Life's too short.

I'm sticking with those who grow and execute. You can have the rest.

Random musings:

The old day-book editors are at it again. These are the people who have to write copy for the talking heads. They look on their calendar and see producer prices get reported tomorrow. They have to make a big deal of it. They have to call it an all-important event. That's their job. Our job is to make money. Sometimes there is an intersection, and sometimes there isn't. I see no intersection on this one.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco and Humana, although positions can 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 letters@thestreet.com.