Hewlett-Packard Company (NYSE:HPQ) and Family Dollar Stores, Inc. (NYSE:FDO) are stocks investors should closely watch, Jim Cramer said in a discussion on CNBC’s “Squawk Box”. The comment from the “Mad Money” host comes as Hewlett-Packard Company (NYSE:HPQ) reported its performance for its third quarter of fiscal year 2014 and as Family Dollar Stores, Inc. (NYSE:FDO) has rejected a takeover bid from Dollar General Corp. (NYSE:DG).
During its earnings call, Hewlett-Packard Company (NYSE:HPQ) reported a net revenue of $27.6 billion, an increase of 1% year-over-year. Non-GAAP diluted net earnings per share was said to be $0.89, up 3% compared to the same quarter in the previous fiscal year. GAAP diluted net earnings per share was reported to be $0.52, down 27 percent compared to Q3 2013. The company also reported third quarter cash flow from operations of $3.6 billion, operating company net cash of $4.9 billion, and $881 million in returned cash to investors via buybacks and dividends.
However, Cramer does not seem impressed with Hewlett-Packard Company (NYSE:HPQ)’s performance. He said that he wants to ask the company’s CEO, Meg Whitman, why printers and the enterprise sides of the business did not do as well as expected. Furthermore, he commented that the personal computer side of the company has been boosted during the quarter, but it may go down in the coming quarters.
Cramer said that the technology veteran has had a “great turnaround story” but this story may have been played out by now. The company’s performance for the quarter was okay, he added, but other companies in this industry, which are comparable to Hewlett-Packard Company have also performed well in the last quarter.
Meanwhile, moving on to Family Dollar Stores, Inc. (NYSE:FDO), Cramer noted that investors should watch what the company does next because it just rejected a takeover bid from Dollar General Corp. (NYSE:DG).
He said that it seems Family Dollar Stores, Inc. (NYSE:FDO) really wants to resist the takeover because the company may see a looming antitrust investigation should the deal gone through to be serious. Dollar General Corp. (NYSE:DG) offered $8.9 billion to buy Family Dollar Stores, Inc., but the company instead opted to continue its $8.5 billion merger with Dollar Tree, Inc. (NASDAQ:DLTR).
Hedge funds with investments in Family Dollar Stores, Inc. (NYSE:FDO) include John Paulson‘s Paulson & Co which had, by the end of the second quarter, 8.02 million shares of the company.