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'Tis the Season for Tech, Already

Don't outthink this period; these stocks even work during earnings because valuations are so low.
Author:

This column was originally published on RealMoney on Oct. 13 at 8:51 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Tech works. It works seasonally. It even works in earnings, even as it will be uneven.

I never outthink this period.

Cisco's

(CSCO) - Get Cisco Systems, Inc. Report

killing 'em. So is

Oracle

(ORCL) - Get Oracle Corporation Report

. If you don't like

Microsoft

(MSFT) - Get Microsoft Corporation Report

here, something's wrong. I think

Hewlett-Packard

(HPQ) - Get HP Inc. Report

is having a monster quarter and would be up more if it weren't for this bugging stuff.

How good are things? I think that

TheStreet Recommends

EMC

(EMC)

will do well, and that's saying something. I think that a lot of the bad news -- and there will be bad news -- in a

Broadcom

undefined

and a

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

is discounted.

Intel's

(INTC) - Get Intel Corporation Report

moved up, but there is more ahead.

One thing I think people must know is that the valuations in tech are so low that you won't just get a pop. This isn't like the valuations in the

Cokes

(KO) - Get Coca-Cola Company Report

and

Pepsis

(PEP) - Get PepsiCo, Inc. Report

. You have companies growing much faster than the staples with lower multiples. That means you are going to see some levitation, and you have to be ready for it.

The hedge funds are still negatively positioned in the semis. There's still a lot of disbelief in the big theses: strong cell phones, PCs -- yeah, isn't that something? -- big-screen TVs and video games. Home theaters are chockablock with tech!

The tough question is, will people overlook any weakness? Take the

BellSouth

(BLS)

-

AT&T

(T) - Get AT&T Inc. Report

merger. That has frozen tech spending for now. So the

bandwidth shortage that I have articulated -- and YouTube is a bandwidth monster -- will look like it is pausing a bit. That will be a false tell.

Comcast

(CMCSA) - Get Comcast Corporation Class A Report

and

Time Warner

(TWX)

will

be spending, but it is still a tad ahead.

I think that we are in a forgiving mode for tech and you can pretty much buy anything. But if you are fearful, buy the stuff that has already reported good results, the Oracles and the Ciscos.

For me, it is the

Apples

(AAPL) - Get Apple Inc. Report

and the Hewlett-Packards that are more exciting.

Random musings:

Don't turn up your nose at the

SAIC

deal. It's worth picking up.

At the time of publication, Cramer was long Hewlett-Packard.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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