Cramer's TheStreet.com TV Recap: Avoid Tech Price Wars

Identify those companies in tech that are waging price wars -- and avoid them, Jim Cramer advised in the TheStreet.com TV's Wall Street Confidential video Friday.

Host Aaron Task said it seems as though the damage has been contained after recent warnings from software company SAP(SAP Quote) and chipmaker Advanced Micro Devices(AMD Quote). Cramer said both businesses have been challenged for some time, with AMD being a repeat warning offender. AMD is locked in a vicious price war with Intel(INTC Quote).

As for SAP, Cramer said it's also another company that he expects to hear negative things about. There probably should have been a heads-up that SAP could go down after Amdocs (DOX Quote) plummeted yesterday, Cramer said, adding that rival Oracle (ORCL Quote) should go down as well.

"There's some sort of negativity going on in this customer relations management business that I can't get my arms around, and until then I can't recommend anything in that space," Cramer said.

Task mentioned that Helene Meisler, a longtime contributor to RealMoney.com, has been saying that Oracle looks like a good short. Cramer noted that Oracle just went from $12 to $18, and there also is a price war in that kind of software.

"You've got to stay away from those," he said of software that doesn't have a distinct proprietary aspect to it. "There are enough places where there are no price wars -- you don't need a price war."