One Tech Buy, One Tech Sell
A lot of investors want to buy the laggard stock in the hot semiconductor sector, but Cramer during Tuesday’s “Stop Trading” advised against it.
The stock in question is Micron Technology , maker of DRAM storage chips. But according to Avnet CEO Roy Vallee, who runs what Cramer described as “the biggest supermarket of tech,” DRAM right now is suffering the weakest pricing in the industry. So while Vallee said DRAM may recover in 2011, Cramer warned investors to stay away from MU in the meantime.
“Even though it looks very compelling at $8,” Cramer said.
On the flip side of the chip business, Cramer said SanDisk was a buy. Though Best Buy reported an “abysmal” quarter, the company did say that tablet sales were freezing the notebook market. Tablets use flash memory, and that’s SanDisk’s business.
Lastly, Cramer was willing to give OpenTable , an online restaurant reservation service, another look. He said a recent report showed the service saves money for small restaurant chains, which makes the business seem viable when some, including Cramer, had doubted it. Plus, OPEN, along with Apple , Netflix and Salesforce.com , is one of the few 20-percent growers in the market.
“So when I see it down,” Cramer said of OpenTable, “I’m tempted to think, all right, well, maybe the worry’s over.”
When this story published, Cramer's charitable trust owned Apple.
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