When Lightning Strikes

When merger activity heats up to this level, it can get pretty stressful out there.
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This takeover activity feels as heated as I can ever recall. In fact, we have stocks reacting to bids that haven't even occurred yet. IBM (IBM) - Get Report swoons on a rumor that it will buy Compuware (CPWR) . Sun Micro (SUNW) - Get Report gets killed on a Computer Sciences (CSC) riff. Cisco (CSCO) - Get Report gets hit on speculation it is after Tellabs (TLAB) .

Next thing you know I will have to sell my

Lucent

(LU)

because of the potential power of a Cisco-Tellabs combination!

And who can blame people? Lately, almost every rumor is true. We just sold our

Outdoor Systems

(OSI)

the other day, and

CNBC

just mentioned a potential bid from

Infinity

(INF) - Get Report

. I guess our sale alone means that's happening.

Raychem

(RYC)

puts itself up for sale and, boom, lightning strikes. I hesitate to think about what will happen with

Champion

now that it got rumored.

Washington Mutual

says it probably won't make any more acquisitions and yet it makes one.

For me, this takeover business causes more grief than happiness. I can't game it. I can't just go buy stuff that may not work without a takeover bid. It is a stressful sideshow unless -- or until -- it strikes here.

So far, it hasn't struck.

But, for what it is worth, we recently sold our

Newbridge

(NN)

and our

Praxair

(PX)

. So, at least you can have a sense what would throw us over the edge if lightning were to strike again.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco, IBM, Lucent and Tellabs. 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

letters@thestreet.com.