Unisys Adds to the Chill

PaineWebber's downgrade of this hardware darling only makes Cramer more nervous about all the other folks in the industry.
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Unisys (UIS) - Get Report reminds us how tough this server and enterprise hardware group has become. I thought everything was fine at this Blue Bell, Pa., company.

Everything seemed to be hitting on all eight cylinders.

Then this morning, we learned that four of those cylinders are silent.

October Chill: Join the discussion on

TSC

Message Boards. Network and NT services, year 2000 transition issues, bad currency compares and organizational changes wrecked the pistons of this hardware fave. And now

PaineWebber

is downgrading it for all of the usual suspect reasons.

Losing Unisys is like losing

Xerox

(XRX) - Get Report

. It makes you nervous about all of the other folks in the industry. It counteracts the good news of

Apple

(AAPL) - Get Report

and

Altera

(ALTR) - Get Report

and the

IBM

(IBM) - Get Report

upgrade from PW.

If the bonds, which I am long, were better, we could look the other way from Unisys. We could act as if it weren't in the room. But they stink again, so it is. You may not be long Unisys, but others are or have thought about it. They feel quite chilled today. A sweater ain't gonna help that shiver.

Don't be faked out. We are in the tough period. Unisys makes it tougher.

Random musings:

Apple and

Maytag

(MYG)

took expectations so low that they can bounce. Frankly, I wish they had just gotten it right in the first place.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Altera and the 30-year bond. 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

jjcletters@thestreet.com.