GO
Loading...

Texas-Sized Profits

Tuesday, 24 Jul 2007 | 8:09 PM ET

Every summer gadget companies are building the products they plan to sell during the late summer to Christmas bull market. A good investment play on the trend is to buy the component makers, Cramer said.

Time 4 Tech: Texas Instruments
It's time to buy tech, and Mad Money host Jim Cramer takes a look at Texas Instruments.

He likes Texas Instruments . Sure, the stock sold off on the quarter, but Cramer doesn’t care about that. He’s thinking longer term. The only thing that matters is the coming months when the products that use TXN’s chips are flying off the shelves. So what if the stock is down big today? Enjoy the discount.

Texas Instruments’ business in mobile phones should energize the company. Ten percent of its sales go to Nokia alone, and that company is doing quite well, Cramer said. There also are indicators from fellow semiconductor firms like Analog Devices and National Semiconductor , which said order rates are up and inventory is down. And cell phone companies Ericsson, Samsung and Sony have all said the market for wireless handsets are strong.

TXN is another company riding the Apple iPhone wave even though it doesn’t make any products for the phone. But both Nokia and Hungarian Telephone and Cable are pushing to compete with the latest craze from Steve Jobs’ outfit, and as Cramer said, the winner in any arms race is the supplier.

Bottom Line: Today, you’re getting a big bargain in Texas Instruments. This stock is a gift, but on Mad Money, Cramer still recommends Home Gamers do all their homework before they buy a stock.

Questions for Cramer? madmoney@cnbc.com

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

  Price   Change %Change
ADI
---
ERIC.B
---
NOK
---
6758.T
---
TXN
---
AAPL
---
NATIONSTAR
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.