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Cramer's TheStreet.com TV Recap: Tech Warrants a Look

TheStreet.com Staff

Jim Cramer discussed technology, the housing market, drugs and oil in his TheStreet.com TV video Wednesday.

"Altera (ALTR) blows up; the stock doesn't even go down," Cramer said on his video, Tech Alive. "I mean, what does that tell you about what's happening here?"

The programmable chipmaker lowered its revenue estimates Tuesday, but the action was not detrimental to the company's stock the next day.

"I believe that the tech trade is still very much alive," Cramer said, "and I decide that it's alive not by how much upside there is but by the limit on the downside."

Cramer also spoke about Oracle (ORCL), whose shares declined Wednesday after Lehman Brothers advised clients to sell the stock. Oracle should not be off as much as it is, said Cramer.

"It makes me think that there's a possibility that with any of these tech stocks that are going down here -- including the software companies -- you have to at least open the books and take a look at them," Cramer said.

On the housing side, Cramer mentioned such sector-related companies as Ingersoll-Rand (IR), Deere (DE) and Caterpillar (CAT), adding that the biggest problem in housing stocks is due to a belief that we are far away from a return to strength in the housing sector.

That may not be the case because of 6% mortgages, he said. "If you're a national homebuilder you can now pick and choose, and say, 'You know what? I'm not going to build any more in the Northeast, but this Texas market is really hot,'" Cramer said.

He said he believes that we are seeing a return to regional areas that are strong and that stocks are beginning to go up because the decline in mortgage rates is making it so you can build again in select areas.

"There is demand, we are still a growth country and people will still buy houses with mortgage rates this low because they don't want to lose the rates," Cramer said.

As for drugs and oil, Cramer said oil is due for a little decline, and drug stocks seem to be very stalled. He alluded to the problem over at Pfizer (PFE) and that there's a lot of concern that the issue may not be isolated, although he said he believes it is.

Cramer said that if he were an analyst following Goldman Sachs (GS), a stock he owns for his Action Alerts PLUS charitable trust, he would make a call Thursday and advise people to buy the stock because its numbers are too low.