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Cramer's 'Mad Money' Recap: The Fab Four of Tech

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.

There are four new "horsemen of tech" that investors can bank on to drive this market, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

However, before naming these four stocks, he first called out the four "retired horsemen of tech." Intel (INTC Quote), Dell (DELL Quote), Microsoft (MSFT Quote) and Cisco Systems (CSCO Quote) have all fallen from their former days of glory, Cramer said.

In 1999 and 2000, Cramer said he nicknamed the four companies "horsemen" because people felt secure with these four stocks. They made the market come alive with pleasure," Cramer said. "Even kryptonite couldn't hurt them."

The companies that defined an era have since stumbled badly, he said. Intel is down 71% from its high in 2000, Dell is down 54% from its high in 1999, Microsoft is down 49% from its high at the end of 1999 and Cisco is down 67% from its high in 2000. These stocks now "have been exiled on Wall Street," Cramer said.

However, even though Intel, Dell, Microsoft and Cisco are no longer the four horsemen leading the market, the idea that tech stocks can be owned and traded during dull summer days still exists, he said.

One of the most important lessons Cramer said he's learned in this business is that stocks may change but patterns stay the same.

The new horsemen are Research In Motion (RIMM Quote), Amazon.com (AMZN Quote), Google (GOOG Quote) and Apple (AAPL Quote), Cramer proclaimed.

This new group has "taken over," and these are the ones worth owning, Cramer said. "They are in charge."

Cramer said he still likes Dell, even though it is no longer a leader, and he's still bullish on Cisco and Microsoft, as well. He just doesn't like them as much as the new horsemen.

But Intel, Cramer said, "is a poor little lamb that has lost its way."

More on the Four

During and after a selloff, market players need stocks to keep them in the game, Cramer told viewers. Research In Motion, Amazon, Google and Apple are such stocks. Though Cramer believes that investors in general shouldn't own tech until the end of the summer, these four are tech stocks people can own now.

Cramer began with RIM, calling it the "undisputed winner of the handheld," which has had a successful expansion in Latin America. It is a "fantastic" story, he said. Palm (PALM Quote), Cramer said, has got nothing on it.

Moving on, he said that Google is a cheap stock "destroying everything in its path." This stock, he said, has left competitor Yahoo! (YHOO Quote), which Cramer owns for his charitable trust, Action Alerts PLUS, "in the dust."

Google "owns search," and even though it recently hit its high, it's still cheap, Cramer said, adding that he believes Google should -- conservatively speaking -- go all the way to $600.

Further, although there have been sites similar to Amazon's, the company is one of a kind, he said. It "has the mechanics to dominate for years" and is a double threat as a tech and retailer. Growth drives a company, and Amazon, Cramer said, is full of growth.

Apple, on the other hand, is a bit more complicated. "I wouldn't buy it now," he said. Instead Cramer advised selling some Apple on its way up and buying it back after the iPhone launch, which is set for June 29.

Apple, he said, owns the MP3 player market with its iPod product, and now it's getting into phones -- a genius move. "It's an aspirational brand," which means the sky's the limit for the stock, Cramer added.

He called Research In Motion, Amazon, Google and Apple all "gigantic names that are so good they can't be competed with anymore."

Am I Diversified?

During Cramer's "Am I Diversified?" game, the first player called out the following five stocks: Bank of America (BAC Quote), Exxon Mobil (XOM Quote), Duke Energy (DUK Quote), FuelCell Energy (FCEL Quote) and Altria (MO Quote), a stock Cramer owns for his charitable trust.

Cramer called the portfolio "perfect" and blessed it as diversified.

Cramer's next caller asked if he was diversified with these five plays: Apple (AAPL Quote), Schering-Plough (SGP Quote) Devon Energy (DVN Quote), Target (TGT Quote) and Yahoo!

Cramer said the group of stocks was "picture perfect."

His last caller named the following five stocks: Yamana Gold (AUY Quote), AT&T (T Quote), Trinity Industries (TRN Quote), Volcano (VOLC Quote) and Transocean (RIG Quote), a play Cramer owns for his Action Alerts PLUS portfolio.

"Again, I'm talking about perfection," Cramer said, blessing the diversified portfolio.

Shield Thyself!

Actor Michael Chiklis from The Shield and upcoming movie Fantastic Four: Rise of the Silver Surfer appeared as a "Mad Money" guest and called himself a "senator of Cramerica."

Chiklis said he bought Rite Aid (RAD Quote) because of Cramer's show, and the stock has put him in the House of Pleasure.

When Cramer asked Chiklis what he would say to someone who bought a stock after hours without doing the homework,Chiklis responded, "Oh no, no, no. You have to do your homework."

Also, if your stock has done well, you have to take some off the table, he added. "Schnitzel," he said. "I've read the book."

Chiklis said it was his father-in-law who turned him onto "Mad Money."

During the "Sudden Death" round, Cramer was bullish on Yamana Gold (AUY Quote), Equinix (EQIX Quote) and LandAmerica Financial Group (LFG Quote).

He was bearish on Silver Wheaton (SLW Quote).

Lightning Round

Cramer was bullish on SunTrust Banks (STI Quote), Qualcomm (QCOM Quote), Texas Instruments (TXN Quote), Cisco, Teck Cominco (TCK Quote), BHP Billiton (BHP Quote), Companhia Vale do Rio Doce(RIO Quote), Freeport-McMoRan (FCX Quote), Superior Offshore (DEEP Quote) and Golden Star Resources (GSS Quote).

Cramer was bearish on Pier 1 Imports (PIR Quote), Partner Communications (PTNR Quote), Cree (CREE Quote), Nortel Networks (NT Quote), Starbucks (SBUX Quote) and Ciber (CBR Quote).

For more of Cramer's insights during the Lightning Round, click here.

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