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Sell Block: Tech Is Dead

Tech stocks, with very few exceptions, should now be sold, Cramer said during Thursday’s Sell Block segment.

The argument is simple: While the great technology companies of the 1990s and early 2000s are using their innovative know-how to make smaller mp3 players, more life-like video games and faster memory cards, America’s manufacturing sector has stepped up to the plate to solve the real problems we face: making energy cleaner and more efficient, getting at precious resources, addressing the food crisis, reducing emissions.

What’s more important to you -- the new Grand Theft Auto game or using less oil? Because that’s essentially the difference between this country’s tech and manufacturing industries. And it’s why Cramer thinks the time has come to jump ship almost entirely out of tech and into the new businesses of innovation.

Apple is really the only exception, as far as he is concerned. He’s been recommending buying AAPL and riding it until the new iPhone is released sometime this summer.

The big problem with tech is that the companies are devoted to the consumer, Cramer said. They’ve forgotten how to innovate and only care how to sell. On the other hand, manufacturing companies like Eaton (with a plan to reduce truck emissions by 40%), Trinity (up 10% Thursday on its wind technology) and First Solar (tackling the single most important issue of our time by making alternative energy affordable and efficient) are run by engineers who are in business to solve the world’s real problems. And they’re making a bundle doing it.

You can see it in the stocks, too. Old tech stocks have high price-to-earnings multiples and slowing growth, whereas the new tech names are growing fast and have low multiples. It’s clear to Cramer that money is flowing into these new tech plays and it’s why old tech, with the exception of Apple and not much else, is now consigned to the Sell Block.

Questions for Cramer? madmoney@cnbc.com

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

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