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The Savior From Subprime Sorrows

Tuesday, 24 Jul 2007 | 11:24 AM ET

There’s a great reason to own tech right now – even aside from its immunity to subprime. The group is experiencing its yearly lows just before the big back-to-school and holiday seasons.

Time for Tech: SanDisk
The time is right to buy tech, according to Mad Money host Jim Cramer. He recommends SanDisk.

Soon enough investors will be rushing to tech stocks as they enter their annual fall bull market. Cramer wants Home Gamers to buy in now before the demand soars. To help them find the right picks, he’s using this week to highlight what he thinks are the best companies in the sector.

Cramer likes SanDisk ahead of this week’s analyst meeting. SanDisk’s product, Flash memory, has always played back-up quarterback to starter QB hard drives. But it looks like that’s about to change.

Last quarter, SanDisk reported 30 cents a share in earnings – 14 cents more than consensus estimates. That’s nothing to scoff at, Cramer said. Also, the company said the new crop of Flash-memory-enabled consumer and mobile products should create a strong demand for SanDisk’s business in the second half of 2007 going into 2008.

The Apple iPhone uses a type of Flash memory called NAND. Although Samsung got the contract, Cramer said the use of NAND in Apple’s latest hot product should create demand across the board. More good news for SanDisk.

Bottom Line: Cramer thinks the time is right for tech, and even more right for SanDisk.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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