Sell Block for Thursday, March 15
Web Editor, "Mad Money"
Listen to Cramer and he’ll help you avoid cozying up to the wrong tech stocks, like Oracle or Microsoft or Texas Instruments.
People seem to be watching Oracle on its decline, assuming that things will switch course some time soon. Not going to happen. The company hasn’t put a stop to its over-acquisitive habits, this time with Hyperion – yet another not to buy.
Microsoft isn’t enjoying the jump you might have expected it would get with Vista. Staples said this week that the new operating system just isn’t selling. And the Zune? Need we say more? On top of all this, the company’s online strategy has turned out to be a non-strategy, if anything.
Storage has been a disaster. EMC announced it would break itself up to bring out value. Since then the stock is down 15%. Good move, guys. You can ignore Sandisk, Seagate and Network Appliance, too.
IBM is going nowhere as long as Sam “Wall of Shame” Palmisano continues to issue breakthrough tech releases instead of breakthrough earnings releases. Or even better, a breakthrough announcement that he wants to spend more time with his family.
The networking stocks? Aside from Cisco, they’re wearing cement shoes. Ciena had a horrible quarter, and Juniper feels like it’s in the resignation and restatement business.
Don’t expect much from chips either. Micron Technology? It equals bad, and that’s all you need to know. Texas Instruments? Its mid-quarter update turned out to be a bust. Intel? It would need Viagra to get to $20. AMD? The only question here has nothing to do with buying or selling – it’s should this company even exist? And definitely avoid the companies that make equipment for the semis – Applied Materials and Novellus. You can’t call a bottom in this industry until the semis themselves start to climb.
There are some pockets of strength, though. Cramer recently did a segment on Akamai , a good NCAA basketball play. Garmin because it’s unique and still taking share. Qualcomm because its earnings are much better than expected – this one’s going to $45. Hewlett-Packard, which Jim’s charitable trust own, is doing well, even if it is off the misery of Dell. Cisco is worth owning. Apple’s making a move, too.
Cramer likes eBay and Yahoo! because they’re going from bad to good. Google’s bottomed, sure, but it won’t go up with Viacom nipping at its heels.
Always remember another Cramer maxim: This is the wrong time of year to own tech. Period. You wait for the middle of the summer before buying any tech again. If you must own tech, check out eBay, Yahoo!, Apple, Cisco, Hewlett-Packard, Akamai and Garmin.
Jim's charitable trust owns Hewlett-Packard and Yahoo!.
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