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TheStreet.com's Jim Cramer says even if the companies are OK, the stocks are going nowhere and need to be sold on strength.Has tech had it?
Apple (NASDQ: AAPL) (Cramer's Take) simply didn't do that well. Google's (NASDQ: GOOG) (Cramer's Take) stock is floundering even if Google isn't. Garmin's (NASDQ: GRMN) (Cramer's Take) been pretty much destroyed. Microsoft's (NASDQ: MSFT) (Cramer's Take) in the same place it started after that great quarter. Texas Instruments (NYSE: TXN) (Cramer's Take) surprises to the upside and does nothing; same with Corning (NYSE: GLW) (Cramer's Take). VMWare's (NYSE: VMW) (Cramer's Take) simply awful, dragging down EMC (NYSE: EMC) (Cramer's Take), which I unfortunately own for
Which leads me to conclude that, yes, tech has indeed become pretty much irrelevant. The big growth drivers, exciting product cycles, big innovations, don't exist. eBay (NASDQ: EBAY) (Cramer's Take), IAC/Interactive (NASDQ: IACI) (Cramer's Take) and Yahoo! (NASDQ: YHOO) (Cramer's Take) are just pathetic, all without leadership and declining earnings. Nobody cares about new kinds of cell phones or music or movie deliveries. It is all just too darned competitive.
Regardless of what companies say about the excitement of new PCs filled with new features and hardware, nobody likes them as stocks for certain. Remember Dell (NASDQ: DELL) (Cramer's Take)? Now that homebuilders and banks are moving along with retailers, this is the worst group to own. Apple? We had thought that Macs would be the icing on the iPod cake, but we never even got to it because the cake was so disappointing.
I wish I had good answers for this. I wish I could say "Ignore it, Western Dig (NYSE: WDC) (Cramer's Take) just reported a great number and so did Corning." But I tried that with IBM, and it didn't work.
Reluctantly I have to conclude that this is a group that on strength has to be sold. Anything I own that has tech has been killing me for
Tech's awful.
Now, there will be people who will say "OK, Cramer's throwing in the towel on tech, buy tech." To which I say, "I hope you are right, because I can't get out of most of the tech I own anyway, and I sure hope I am wrong."
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Cramer is long EMC and Corning.
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Reader Comments (Page 2 of 2)
2-01-2008 @ 5:37PM
Wild Bill said...
Bought Dell log ago. Bought 500 shares. Have thirty thousand shares now. Will Hold. Cramer has ranted and raged until he has had a seizure. I like the suggestion above, give up on his recommentations and throw darts.
2-02-2008 @ 1:02PM
Mama said...
On Jim's advice concerning his so-called "three horsemen" to get everyone through the possible recession, I bought RIMM, GOOG, and AAPL. I heard him with my own ears telling people to buy GOOG - if only 1 share - no matter how expensive - for their childrens' college education fund. Now he says "dump all tech". How many families listened to him only to hear him go back on his own advice and lose their hard-earned money? How can he sleep at night? I'll never listen to him again I can assure you.
2-05-2008 @ 6:37PM
Martin said...
Tech is the least of peoples worries. Scroll up for my blurb on the economy.
I cannot believe all the morons out there that believed how robust the US economy was while things were coming unglued. Inflation is 15% , housing here in CT is selling 30% below what the listing prices are which are already down 20% or so. Entire cities are filling up with foreclosures.
I have not been able to get through to anyone in the media about the real story of what is going on with this economy, noone really cares.
One thing time will show is that a lot of people who are "rich" got that way by taking advantage of other people. Either with rip off loans, backdating of stock options, fraud at banks, insider information etc.
The joke on Wall sTreet is the China is becoming a money center now. So the people at the top that made money off of all the companies getting outsourced may themselves be outsourced as China find the Wall Street fees very lucrative and will float new issues for 1% instead of 4% that Wall Street charges. Sounds like Wall Street will get Walmartified.
Im just disgusted that noone stands up for the middle class. Noone really understands the huge change happening.
Marty
2-07-2008 @ 12:13PM
Chuck said...
A year and a half ago Cramer said that "there is a $28 stock masquerading as a $17 stock." The symbol was REDF. He advised to do home work that took me one week to accomplish. The day I bought it he yelled; "Sell Sell Sell" on his program and REDF dropped to $9 and stayed there. When I told my Ameritrade rep what happened, he laughed and advised to "not listen to anything Cramer says." I started a tracking list of his recommendations and discovered 80% of his recommendations don't pan out.