Cramer on BloggingStocks: Don't miss this moment in tech

From TheStreet.com Network

TheStreet.com's Jim Cramer says the good developments in the space got lost yesterday amid all the hubbub over banks.

We are so focused on the endless one-time gains at Bank of America (NYSE: BAC) (Cramer's Take) that made the quarter look better than it should that we forgot about some other obvious positives that were occurring right before our eyes. I am talking about tech, and tech mergers and tech earnings.

No, I am not minimizing the problems of the banks -- did anyone think that Ken Lewis would choose to show a loss if he had a chance, as the bears seemed to urge? I am saying that when you have both Oracle (NASDAQ: ORCL) (Cramer's Take) and IBM (NYSE: IBM) (Cramer's Take) interested in something that we thought was worth very little just a few weeks ago -- Sun Microsystems (NASDAQ: JAVA) (Cramer's Take) -- when you have Broadcom (NASDAQ: BRCM) (Cramer's Take) interested in buying Emulex (NYSE: ELX) (Cramer's Take) -- another left-for-dead tech company -- and when you have Texas Instruments (NYSE: TXN) (Cramer's Take) saying inventories are lean, mostly because of Asian demand, you are not getting a picture of despair.

In fact, the bank problems totally obscured what should have been a pretty fabulous day for tech, if the Nasdaq hadn't been so far ahead of the other averages already.

When I look at the landscape of what to buy I keep coming back to tech because it is the universal anecdote: great balance sheets that do not need capital raising, a sector in bad need of consolidation that is getting it, a group of companies that suffered from tremendous inventory overhang, and a cohort that has enough Asian exposure that it can benefit from the successful Chinese stimulus.

Instead, we focus on Bank of America.

Tuesday looks like a turn, but I would think that turns would be bogus this soon in earnings season because we know Wells Fargo (NYSE: WFC) (Cramer's Take) is going to be a repeat of Bank of America -- a good-looking quarter that everyone will pick apart.

But if you want to participate in the turn when it happens, you know it is going to be tech -- not drugs, not industrials, not financials, not oils, but tech.

So find what you can live with and buy it today, because this group is the only one with the staying power to make it through this period without a lot of questions, even though earnings will not be perfect.

Random musings: A preannouncement in IBM leads to disappointment when we see the actual number. That's been the pattern with tech forever.

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Wells Fargo.

Tags: bac, brcm, elx, featured, ibm, java, jim cramer, JimCramer, orcl, txn, wfc

Print this

Reader Comments (Page 1 of 1)

4-21-2009 @ 10:42AM

Beltway Greg said...

I believe Apple will post earnings of $1.17 tomorrow. What happens after that depends on a number of factors all of which are out of your control; if you can hang and bang do so but save yourself and don't try to be Billy Jack in this market. If you normally trade in 1000 share blocks add 200 just to say you were there when it happened. That way you'll eventually get your money back but you won't have to sit and pout for a few weeks and you can still trade around the position, meaning that if drops you can double up because the drop will be overdone. Almost every decline in this market is too reactionary. People are just plain crazy these days. Fear is the order of the day.
We'll pull out of this just like we survived 87, 2000, 9-11, Peso Crisis, OPEC, insert your crisis......... Just too many greedy people in America to let it go down. think of dollars as salmon and each is trying to swim upstream to find a safe place to breed and start the cycle over again. Constructing a long-term portfolio has never been easier. Example? SUN. There are many SUNs out in the investing world. Companies that in a good market are dead but in a bad market will be gobbled up and serve as fertilizer for stronger entities as they move forward. Take a company like TIN for example. Remember though, trade the market in front of you not the one you had or the one you hope to get. Cramer didn't do it, you did it but I have to agree with Jon Stewart, this isn't an fing game. Just ask all of those municipalities with underfunded pensions.

4-21-2009 @ 12:22PM

BS Detector said...

Does anybody pay attention to this a-hole anymore? You'd get a better return on your money by running it through a shredder than by listening to this idiot. Surprised he can still show his face in public after Jon Stewart ripped him a new one. Don't listen to any pundits - they always have an axe to grind...ya heard?