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Jim Cramer's Stop Trading! Slamming Denny's

The trader doesn't buy the diner chain's excuses.

A negative chip call is feeding Friday's round of profit-taking, Jim Cramer said Friday on

CNBC's

Stop Trading! segment.

Cramer said he'd be cautious about the semiconductor stocks coming off a series of lackluster earnings reports and some downbeat analyst sentiment. He said waffling on the part of CEOs at

Atheros

(ATHR)

and other companies suggests it's time to back away from these stocks.

"Goldman is saying we could have a long Christmas," Cramer said, referring to a report that indicated sales of motherboards that go into PCs haven't been up to snuff. The chip sector, Cramer added, has had the poorest earnings showing of any sector he follows other than housing -- where shares already have fallen so far that expectations are minimal.

"Lots of areas are rolling," Cramer said of other industries where stocks are setting new highs. "Why be in something that's rolling over?"

Cramer also reiterated that he expects to see more strong gains out of the restaurant sector, where

Brinker

(EAT) - Get Brinker International, Inc. Report

and

Darden

TheStreet Recommends

(DRI) - Get Darden Restaurants, Inc. Report

have been knocking the cover off the ball. He brushed off cautious comments out of

Denny's

(DENN) - Get Denny's Corporation Report

, calling it a "crummy company" that's making excuses rather than fixing its problems.

"I have a theory about Denny's," Cramer said. "Maybe it only rains on their side of the street."

At the time of publication, Cramer had no positions in stocks mentioned.

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