Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Full ShowFull ShowFULL SHOWS
Missed an episode of Mad Money?  Watch the lastest show here.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMER'S SOUNDBOARD
Admit it: You’ve always wanted to hit the “They know nothing!” button. Here’s your chance.




Mad Money PhotosCRAMER QUICK PICS
Check out the Mad Money host on set, back to school, behind the scenes and more.




Mad Money VideosVIDEOS
Get all your favorite Cramer clips right here.





ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It’s Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money’s mobile. Get show highlights sent to your phone.




Text Size
May.01
6:42 PM ET
Thursday, 1 May 2008
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 [AAPL  Loading...      ()   ] 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 [ETN  Loading...      ()   ] (with a plan to reduce truck emissions by 40%), Trinity [TRN  Loading...      ()   ] (up 10% Thursday on its wind technology) and First Solar [FSLR  Loading...      ()   ] (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?

Questions, comments, suggestions for the Mad Money website?

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:06:31 28 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:03:47 28 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:03:47 28 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:06:07 28 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters