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Buying Some Software

When IT spending improves, virtualization software will top priority lists given its quick ROI and cost savings.
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After you have received this Alert, I am going to buy 300 shares of VMware (VMW) at $32.25.

EMC still owns around 30% of the company, but EMC's intention to counterbid for Data Domain (DDUP) suggests that maybe it would be willing to sell VMware to another company, perhaps Microsoft (MSFT) , which has an inferior product to VMware's offering.

The fundamentals remain. Rumored acquirers for VMware have been numerous, but recent chatter is challenging due to the weak corporate IT environment. As the economy improves, however, spending will as well, and the need for virtualization software is on the top of the priority list given its quick ROI and cost savings for its customers.

After my trade, I will own 1,500 shares of VMware, for 1.89% of the portfolio.

Regards,

Jim Cramer

Click here to trade alongside Cramer!http://www.thestreet.com/staticFull/aap-td-ct-offer_alert.html

DISCLOSURE: At the time of publication, Cramer was long VMware.