Internet Review

Don't Leave Two Tech Giants for Dead

 

This column was originally published on RealMoney on Oct. 31 at 12:00 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

The prospects for Intel(INTC) and Microsoft(MSFT) -- as stocks, mind you -- has never been lower and less top-of-mind. That's my take when I canvas the Street and ask people what they think of these two stocks.

Intel is perceived as a hopeless and poorly managed loser that has let AMD(AMD) get the better of it. The fact that it reports 8 times a year and gives guidance each time has led people to believe that it has become a stock that no one will ever get an edge on, so who cares?

Microsoft is worse. Here's a company that is so consistent, it's viewed as being un-ownable. It's viewed as a piggy bank for Bill Gates, who seems to sell no matter what, making the stock an endless printing press that lacks a government bond's upside.

In many ways these two views are, astoundingly, what makes these stocks most interesting. They are both left-for-dead roadkill that nobody gives a darn about.

Meanwhile, I believe that the personal computer is integral to the next stage of consumer gadgetry. The personal computer's screen and its ability to do so many things makes it so that, rather than irrelevant, it's indispensable. We want instant "on," we want better software, we want more Web-surfing tools and we want to be able to take our PCs anywhere and use them. Does that sound like a prescription for obsolescence? Is that a bearish long-term perspective?

These two are inexpensive stocks -- whoever thought that could happen? -- that people are just as comfortable being short as long. At one point on Thursday night, there was a guy trying to sell Microsoft down to $23, for what reason? A penny guidance? There are people who truly believe that Intel has to trade back to the teens to be interesting again, when, if anything, you have to believe that if Intel were to just change someone at the top or how it communicates to Wall Street, you would have a much bigger stock.

Earlier today I was asked if I still believed in a fourth-quarter tech rally. I found myself laughing, because I can understand why we always rally so hard in November and December: because the prospects, the spirit and the will of the bulls is always so crushed by October that you can't help but rally.

That's where we are today.

Kind of nice, when you think about it.

>To order reprints of this article, click here: Reprints

At the time of publication, Cramer was long Intel and Microsoft.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." Cramer appreciates your feedback and invites you to send him an email by clicking here.

TheStreet Premium Services

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,468.15 1,312.98 2,837.00 15.81
Oil *
101.93
UP
48.29
DOWN
0.34
DOWN
0.36
DOWN
0.44
10 Yr
1.58%
SPDR Gold
151.65
+0.39%
-0.03%
-0.01%
-2.71%
Data delayed 20 minutes

Top Stories and Tools

Articles From

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet