Move Down the Tech Food Chain

Tech keeps outperforming. Corning's (GLW - commentary - Trade Now) raised LCD expectations confirms once again that there is more than just inventory rebuilding going on. Same as we got from Cree (CREE - commentary - Trade Now) yesterday. We are seeing very strong numbers from these companies because the gadget business is on fire. People keep wanting to see this increase in the numbers at Best Buy (BBY - commentary - Trade Now), and they are hugely disappointed when it isn't reflected, and the shorting begins again.

I think the shorting is wrong. You are getting a false read from BBY because the products are going to Asia. This Asian shift is what betrayed the short-sellers in Analog Devices (ADI - commentary - Trade Now). The bears got smoked because they just didn't see the Asian orders.

Once again, I reiterate that I like Research In Motion (RIMM - commentary - Trade Now), Apple (AAPL - commentary - Trade Now) -- check out that Morgan Stanley report yesterday with a big, big number bump and aggressive price target that actually makes sense to me (20% above consensus!) -- Google (GOOG - commentary - Trade Now) on what I expect to be a huge quarter because of strong May bookings, and Amazon (AMZN - commentary - Trade Now) off of an extraordinary shift to the Web for product.

But the GLW confirms that the little guys -- the Teradynes (TER - commentary - Trade Now), ON Semiconductors (ONNN - commentary - Trade Now), Tekelecs (TKLS - commentary - Trade Now), Starents (STAR - commentary - Trade Now), and Skyworks (SWKS - commentary - Trade Now) -- are still too cheap.

If you are not migrating down the food chain, you are going to miss some easy money here, and I suspect that those who only do AAPL, RIMM, AMZN and GOOG will be leaving some good money on the table.

At the time of publication, Cramer had no positions in the stocks mentioned.

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