Cramer says he was trashed recently for suggesting Tesla (TSLA) could face increasing competition from the likes of BMW in the next three years. There are too many cheap stocks out there and he can't make a case for Tesla's valuation.
He feels the same way about Amazon.com (AMZN). He can't make a case for owning it because he knows so many companies with actual earnings per share that aren't expensive. It isn't traditional metrics driving many of these stocks now. That can cause problems, Cramer said.
What tech stocks does Cramer prefer? Google (GOOGL), Apple (AAPL) and Facebook (FB) fit his criteria for strong earnings growth, good sales growth and inexpensive valuations based on the out years, which is why they are holdings in his charitable trust, Action Alerts PLUS.
The bottom line: Cramer knows many viewers want him to be more aggressive. At this point, if you want to stay profitable, it's a time to exercise prudence.
A Turnaround StoryContinuing his World Cup-themed series on stock winners, Cramer looked at another Dutch company, Royal Dutch Shell. (RDS.B). Royal Dutch is an oil/gas business worth the scrutiny, Cramer said. He is a huge fan of oil and gas companies primarily based in the U.S., but Royal Dutch Shell is appealing as a turnaround story. Big, integrated oil companies can seem like "pitiful, helpless giants." Shell has had its faults, including cost overruns on expansion projects and disappointing refining output, Cramer said. Cramer welcomed the new leadership of CEO Ben van Beurden, a 30-year company vet who took over in January and has been doing everything right thus far. He plans to improve financial performance and capital discipline seems to be taking hold. Cramer sees some bumps in the road with Shell's plan to sell off assets, but at the same time he's confident the company will invest the cash in buybacks or additional hikes to its dividend.
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