What's bad for

Compaq

(CPQ)

is good for the Net. More personal computers to be sold at lower prices. That's what the market is saying, and who am I to disagree?

What have I done? I bought some Net and some drugs and some banks. I got vindication rapidly in this strategy, which I outlined to readers

last night.

The banks and brokers are working because

Bear Stearns

(BSC)

reported a blowout quarter. The drugs are working because

PaineWebber

upgraded

Bristol-Myers

(BMY) - Get Report

. (And people are piling into

Warner-Lambert

(WLA)

, by the way.)

The Net works because more people will get on the Net because of Compaq's announcement.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Bristol-Myers Squibb, 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.