Mad Mail: Biz Cycle Driving Chip Stocks

Jim: How does Lam Research miss earnings last week by 7.5%, shoot up 7% on a generally down day in the market with about two times average daily volume while the sky is falling with swine flu? Is this a sign the institutions are "all in," and I can safely buy now? Or is this the end of its run up from $18? --Ray

Cramer says: “Obviously there was an earlier time to get in. Some people will continue to get in as we see better and better numbers. There is a bottom in the semiconductor industry, so soon there’ll be a bottom in semiconductor equipment. It always happens. It’s why KLA Tencor is a buy…It’s why Novellus is a buy. And I don’t like those companies. But that’s what happens at this point in the cycle.”

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