Mad Money

Cramer: Nike could be your best... tech play?

Cramer speaks of sneakers and semis

Jim Cramer saw two very disparate quarters from both Nike and Micron this week. And while one company deals with sneakers and the other with semiconductors, Cramer thinks they could actually both be a play on the same thing.

One company is a proprietary business that requires an insane amount of technology costs, large barriers to entry, and a massive investment in plant, equipment and R&D just to stay on top.

The other is a pure commodity play that has no differentiation at all and can lose share at any time because it doesn't have any barriers to entry. It also has low technology costs and almost no research.

Believe it or not, the first company is Nike and the second is Micron.

Victor J. Blue | Bloomberg | Getty Images

"People always seem to confuse the value of technology to some industries like apparel and the value of it to others, like personal computers," the "Mad Money" host said.

Cramer would even argue that more R&D goes into a new piece of apparel, or new Nike sneaker, than what goes into a personal computer.

And besides Under Armour, it seems that these days Nike is distancing itself from the pack because of its innovation.

Micron, on the other hand, spends a lot on flash technology and is still just the maker of dynamic random-access memory, fondly known as a DRAM. Cramer doesn't see anything about a DRAM these days that is any more special than a technology loaded sneaker.

"Disagree? Then how is it possible that the average price of a basketball sneaker is going higher, while the average price of a personal computer keeps going lower and taking the pricing power of the components inside down with it?" Cramer asked.

And, to make matters worse for Micron, the world has a major glut of PCs. But Nike has a shortage of Air Jordans, even though these two products have been on the market for approximately the same time.

It was also pretty clear to Cramer after listening to Nike's conference call that its next quarter is going to be amazing. It won't matter where the dollar goes or what happens with Greece.

Cramer was hoping that Micron's 3D NAND flash memory business would be able to save the day for Micron, but now he sees nothing but price competition for it down the road.

"Now, comparisons are odious. I don't think you can find a better group of commodity semiconductor manufacturers than the folks at Micron. But Nike? I can't believe how good they are," Cramer added.

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So while Under Armour will certainly give Nike a run for its money, Cramer believes that the market has room for both companies. Micron, on the other hand, has a dimmer future.

There is no room for anyone in the sad PC business, and unfortunately Cramer predicts it being downhill from here.

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