Editor's note (Part 5 of 7): The following is text from Jim Cramer's keynote speech at The Deal Economy Event on Dec. 5 at the New York Stock Exchange, New York City. To watch video replays of the event, click here. To read more content from Jim Cramer on Real Money, click here.
NEW YORK (TheStreet) -- A fifth theme that will make you money in 2014? Think stealth tech and the power of innovation. When we think of tech we think of Microsoft (MSFT), Intel (INTC), Cisco (CSCO), Oracle (ORCL), IBM (IBM) and even Apple (AAPL), companies that were at the forefront of innovation, but now seem to be content with simple line extensions with smaller form factors, although Apple's so cheap it is still worth owning.
To get real innovation these days, real progress, you have to consider companies like Colgate
(CL), which is taking tremendous share from Procter & Gamble
(PG) and Unilever
(UL), particularly in the emerging markets as it develops new products that the locals love.
Other stealth tech plays to examine? How about Under Armour (UA - Get Report)? This Baltimore-based apparel company is rolling out new products literally quarterly, with properties that keep you warm or monitor health in ways that you couldn't dream of just a few years ago. It is a factory of innovation.
But perhaps the most inventive major tech company out there is none other than the once-sleepy Wilmington, Del. colossus Dupont
(DD - Get Report). Double D is developing the most new products and reinventing itself on the fly, going from being a boring old chemical concern to being a company that feeds the world and develops health and safety devices that are pulling it away from the pack. Dupont's hard-charging CEO, Ellen Kullman, is shaking up the company in ways that would be inconceivable not that long ago, getting out of prosaic slow-growth businesses and into proprietary products that don't need strong economies around the globe to propel sales.
Next year, she will be spinning off her last commodity business, her boom-or-bust Ti02 franchise, a classic little-value-added product line that makes whiteners for things like toothpaste and paint. I think the new Dupont, with little commodity exposure, will see a dramatic lift to its price-to-earnings multiple as it goes from being a boring GDP play to a secular growth company.
Click here for Part 4.