Investors who missed the opportunity to buy Intel before it’s earnings beat might get a second chance on another chipmaker, Cramer said Wednesday. All they have to do is utilize the same strategy that worked last time: Follow the signs.
Cramer was specifically referring to statements made by Novellus Systems during its recent quarterly conference call. The company said, “NAND prices are up dramatically…75% on Mainstream 16 gigabyte chips due to robust demand,” especially in smartphones. If that’s the case, then investors should buy SanDisk , a pure play on NAND, ahead of its next report.
This is a product-cycle play. Cramer thinks that increased demand for flash memory will catapult SanDisk’s share price upward even though the company itself isn’t best of breed. Combine that with low expectations from Wall Street and you have a classic setup for an earnings beat.
Watch the video for Cramer’s full report on SanDisk. He covers the analyst outlook, the blown buyout offer from Samsung and more.
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