This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'RealMoney' Radio Recap: That's Entertainment

There's a lesson to be learned from the late 1970s, Jim Cramer told his "RealMoney" radio show listeners, and that's the lesson of the computer cycle.

In 1979, a program was developed to enable data to be put into a spreadsheet, and businesses saw that buying a computer with the spreadsheet program would make life much more efficient, Cramer said. As computers developed and innovations were introduced, they soon hit the consumer market and everyone needed a PC.

But that market cycle has run its course, he said. Now, we're in the early stages of an entertainment-driven technology cycle.

Best Buy (BBY - Get Report), long a popular "best-of-breed" big-box retailer, attributed its fourth-quarter double-digit profit growth to audio-visual equipment sales, including big-screen televisions and MP3 players.

People want to be entertained and that is where the growth will be, Cramer said. New products drive a cycle, and while there's nothing new on the PC horizon, there's a lot new in entertainment, he said.

New games coming out for Microsoft's (MSFT - Get Report) Xbox 360 feature some of the most convincing graphics Cramer has ever seen, and he believes there will be more demand for lifelike games.

He doesn't care about the software, focusing instead on the hardware inside that makes the games exciting. In this space, he likes Nvidia (NVDA - Get Report) and ATI Technologies (ATYT).

These stocks have been hot, so he would only buy them after they came down a bit. And he wouldn't put his whole position on at once, he added, since there's a big multiyear cycle ahead of us.

He also likes cell phones because they continue to roll out with products and features that cater to consumers who want entertainment, including the ability to send short videos and better ring tones.

Nokia (NOK - Get Report) and Motorola (MOT) are cheap stocks that Cramer likes. He also mentioned Skyworks Solutions (SWKS - Get Report) because it makes chips in these cell phones, as well as Qualcomm (QCOM - Get Report), which he owns for his ActionAlerts PLUS charitable trust portfolio.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
LTD $0.00 0.00%
HXM $0.80 2.56%
AAPL $128.95 0.00%
AMX $20.79 0.00%
BBY $35.18 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs