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Then there's the curious case of Dell(DELL) vs. Hewlett-Packard(HPQ) . As I said to Markets Reporter Deborah Borchardt in one of our videos on TheStreet today, I think Hewlett-Packard put in a bottom yesterday that can stand for some time. Why? Because there is now a huge short base, supported by comments by Dell, that the personal computer sector is hurting badly. So people, including yours truly, felt it had to be across the board. But last night, Hewlett-Packard put up some terrific PC numbers, especially given that the company itself was about to split off its PC division, which should have been a sales killer.
I don't like Hewlett-Packard because I think there are a host of cheaper tech stocks that have better growth. But I sure wouldn't bet against it anymore.
NTAP offered guidance that led to some of the sharpest earnings per share (EPS) estimate cuts that I have seen in 2012. NTAP made it sound like the sky is falling on the whole big data industry. I think it's the opposite: I think that the sky is falling on NTAP and that EMC is kicking its butt. Like Hewlett-Packard to Dell, PVH to Fossil, I think it's only a matter of time before people realize that NTAP's product line is inferior and its share is falling, perhaps dramatically, to the good managers at EMC.
These are three bogus extrapolations. Two have already been proven and I think the third soon will be. Hence, earlier this afternoon, we picked up some more shares of EMC for the Action Alerts PLUS portfolio to take advantage of the mistake I think the market place is making.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long EMC.