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The New Tenets of New Tech

Tuesday, 20 May 2008 | 6:16 PM ET
Cramer's New Tech Ten
Getting bullish on new technology, with Mad Money host Jim Cramer.

For the last couple of weeks Cramer has been pounding the table on “new-tech” stocks. You’ve heard him say that these are the companies that are focused on solving the world’s big problems, as opposed to “old tech” –companies that make sleeker cell phones or cooler video games or products to make employees become better salespeople.

New-tech stocks are parts of long-term themes, so Cramer thinks investors can buy these stocks – stocks like Eaton , Parker Hannifin , Emerson and First Solar – without worrying about getting clobbered by the day-to-day vicissitudes of the market.

What, exactly, defines a new-tech stock? As far as Cramer is concerned, it’s got to be a company that is developing solutions to real problems and engineering new products to meet our needs.

These needs have to do with energy – creating more and using it more efficiently. Food – producing more of it with more efficiency. Water – improving our supply and protecting against shortages. Environment – reducing carbon emissions. Infrastructure – building what is necessary to enable functioning democracies. Population – supporting the world’s billions of citizens. Fighting poverty, terrorism, disease.

Companies that are working to address these needs are precisely where you want to put your money, Cramer said, especially when the market turns sour like it did on Tuesday. You can buy new-tech stocks on down days because of their powerful themes that should eventually take them higher.

Here's a brand new new-tech stock Cramer recommended on Tuesday.

Questions for Cramer? madmoney@cnbc.com

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

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