TheStreet.com TV Recap: Seasonal Tech Rally Kicking
"We are seeing signals that the traditional August-September tech rally that goes right to the end of the year is so alive that I urge people who are frightened by any of the mortgage issues to find themselves into the tech companies," Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Tuesday.
Component companies are surging in revenue and also in margins because they've gotten their costs down, he explained. It's been such a long time since business has been good that the companies have been cutting headcount.
Therefore, now when there's any bit of sales, "there's been tremendous, what's known as leverage, to the sales because of the gross margins," Cramer said.
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