Jim Cramer's Stop Trading! Tech Looks Due

Cisco, SanDisk and EMC are highlighted.
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Speculative money is pouring out of hot sectors like oil, copper and gold and into tech, Jim Cramer said on his "Stop Trading!" segment on

CNBC

Monday.

Shares like

Cisco

(CSCO) - Get Report

have "fallen behind every sector of the market except housing and they're just due," Cramer said. "

EMC

(EMC)

has made their numbers for four straight years and nobody's cared."

Cramer praised

SanDisk

(SNDK)

, where some analysts see 25% to 40% earnings growth. "You're not going to get that in most of the S&P," he said.

He praised

Lowe's

(LOW) - Get Report

and

Home Depot

(HD) - Get Report

, where "moron hedge funds" have been shorting the stocks because of a misguided belief they're exposed to a hard landing in the housing market. In fact, they're more levered to housing turnover and will "take the shorts out in boxes."

"They're screaming buys at 13 or 16 times earnings."

Cramer also said biotech will see strong prescription growth under new Medicare rules, naming

Celgene

(CELG) - Get Report

,

Cephalon

(CEPH)

,

Amgen

(AMGN) - Get Report

and

Genentech

(DNA)

.

Lastly, Cramer said

Merrill Lynch

(MER)

is repurchasing stock because it can't find anything better to do with its money. Nevertheless, shorting it at 12 times earnings doesn't make much sense, either.

At the time of publication, Cramer was long Cephalon.

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