Net Infrastructure Plays Offer Value

It's hard to find value now among Internet stocks, but there are a few good plays in the infrastructure sector.

Google (GOOG - Cramer's Take - Stockpickr), whose price targets have expanded to Pluto, is moving to expand its audience as well. It has struck a deal with Motorola (MOT - Cramer's Take - Stockpickr) under which some of its handsets will be equipped with one-click access to Google's Web-search services. Not to be outdone, Yahoo! (YHOO - Cramer's Take - Stockpickr) plans to offer software and services for desktop computers and cell phones in an initiative called Yahoo! Go. Users will have access to email, photos and messenger and news.

Google is rated a hold according to ValuEngine, which puts its fair value at $401.23, making it 16.4% overvalued. The hype after analysts raised their price targets for Google, which was reminiscent of the dot-com mania of 2000, took shares to a new high of $473.40 on Monday. The weekly chart profile is overbought, with the five-week modified moving average at $416.68. Google is above my monthly pivots at $458.60 and $461.87, so my suggestion would be to consider a sell-stop at $461.87 to reduce long positions by 25%.

ValuEngine judges Yahoo! to be a hold, but says it is 6.7% undervalued, with fair value at $46.08. The weekly chart profile is overbought, with the five-week MMA at $40.39. The stock reached a new 52-week high at $43.66 on Monday, which was shy of my semiannual and quarterly risky levels at $44.80 and $47.04. Long-term investors should reduce holdings on strength to $44.80 and add to holdings on weakness to my monthly value levels at $38.37 and $37.93.

Amazon (AMZN - Cramer's Take - Stockpickr), which I recommended selling Dec. 1, had difficulties filling and delivering holiday orders on time. It slumped Monday after a research note by J.P. Morgan that said Amazon's business was growing more slowly than the broader e-commerce market.