Intel may have reported a worse-than-expected quarter Tuesday, sending shares down 15% in after-market trading, but that doesn’t mean all of tech will follow suit, Cramer said.
Actually, Riverbed Technology might be on its way back up. The stock reached a high in October before disappointing Wall Street by merely meeting its earnings estimates instead of beating them. RVBD has dropped 56% since. But now Riverbed shares are too cheap for Cramer to ignore.
Riverbed’s trading at 30 times 2008’s earnings estimates with a 41% long-term growth rate. “That to me screams buy, buy, buy, whenever the underlying fundamentals are strong,” Cramer said, “and they are really strong at Riverbed.”
The company optimizes business networks by offering a product that runs them more quickly and enables better remote access for employees. In short, Riverbed saves money for its clients, and that’s why Cramer thinks it will perform well despite this terrible market.
Cramer called Riverbed an “overreaction stock,” meaning Wall Street should send the share price higher as soon as the company starts producing some good news. So for investors looking for a cheap play that actually stands a chance in this environment, “look no further than Riverbed.”
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