Cramer's 'Mad Money' Recap: 10 Reasons to Buy Tech (Final) - TheStreet

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NEW YORK (

TheStreet

) -- "This next quarter might be the biggest in a decade for technology," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday. After a rigorous 10 hours of research, Cramer said all of the signs point to a monster first quarter for tech stocks, despite historically being their weakest time of the year.

Cramer outlined 10 clues that he said points to strength in everything from TVs to notebooks, smart phones to videos games. Despite the conventional wisdom that advises selling tech after Christmas, Cramer said this year will definitely buck that trend.

1. Cramer cited the trade paper "DRAM Exchange Bulletin," which said that DRAM memory chips are likely to be in short supply next year.

2. New research shows that business at

EMC

(EMC)

is getting stronger by the week.

3.

Micron Technology

(MU) - Get Report

confirmed on its earnings calls just last night that DRAM prices are up 25% due to strong demand.

4.

Jabil Circuit

(JBL) - Get Report

is also seeing strength across the board with its big clients like

Cisco

(CSCO) - Get Report

and

Nokia

(NOK) - Get Report

.

5. Little-known

Arrow Electronics

(ARW) - Get Report

indicated it sees strength in North America, Europe and Asia across its 130,000 customers.

6.

Avnet

(AVT) - Get Report

said its seeing accelerating growth going into the first quarter.

7. The CEO of

ON Semiconductor

(ONNN)

said on "Mad Money" that he too is bullish on 2010.

8. Auto electronics maker Infineon has confirmed strength in the auto markets.

9. Research on memory chip maker

Sandisk

(SNDK)

says that company's factories are running at full capacity, something unheard of after the holiday season.

10. Cramer said strong earnings continued from companies like

Texas Instruments

(TXN) - Get Report

and

Xilink

(XLNX) - Get Report

.

For all these reasons, Cramer said tech stocks are a buy, buy, buy going into the new year. He gave an aggressive buy to retailer

Best Buy

(BBY) - Get Report

under $40 a share.

Outrage of the Day

In his "Outrage of the Day" segment, Cramer sounded off on what he called the "outrage of the year." He said he's sick and tired of the press and pundits on Wall Street putting a negative spin on the housing market.

Case in point, today's

Wall Street Journal

headline that warned that lower new-home sales could yet again be a warning sign that the housing market is in trouble. Cramer said these new numbers are not cause for alarm, they make perfect sense. He said that since home prices are lower, of course home builders would be building fewer homes.

Cramer said no matter what the news of the day is, the media always puts a negative spin on it. Every positive headline ends with a caveat. "Is there any value to this kind of story?" Cramer called the tactic lazy, and said reporters and pundits get away with taking both sides because they can't be wrong and there's no penalty for being wrong.

Cramer said in reality the housing market

is

stabilizing. But, he said, if investors wait for that golden "the world is perfect" headline, they'll have missed out on all the profits. "You can't wait until then to make money," he said. The time to buy into stocks like

Home Depot

(HD) - Get Report

, a stock which he owns for his charitable trust,

Action Alerts PLUS, or

Sherwin Williams

(SHW) - Get Report

or

Masco

(MAS) - Get Report

, is now.

Dividend-Paying Stocks

"Give the gift that keeps on giving," Cramer told viewers, "dividends." All week Cramer has been highlighting dividend paying stocks as a way to make far more money than bank CDs or U.S. Treasuries. Tonight he added

Emerson Electric

(EMR) - Get Report

,

Nucor

(NUE) - Get Report

and

Coca-Cola

(KO) - Get Report

to his list of dividend stocks to own.

Cramer said that Emerson Electric is perhaps the most innovative and diversified industrial company in the world, with 55% of its sales coming from outside the U.S. and 75% of its sales tied to global infrastructure projects. He said that this company cut costs and is more profitable than anyone thought it could be at this point in the economic cycle. Emerson yields 3.1% and has raised its dividend for 53 consecutive years.

Nucor yields 3.1% with its dividend and issues special dividends to boot. This company is the lowest-cost producer of steel in the U.S. and has returned 297% over the last decade, assuming reinvested dividends.

Finally, Cramer gave the nod to Coca-Cola, which yields 2.9%. This company has 50% market share of the world's carbonated drink market, is a global player and is constantly innovating with great new products.

Cramer said any of these stocks would make a great holiday addition to investors' portfolios.

Am I Diversified

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included

Altria

(MO) - Get Report

,

Duke Energy

(DUK) - Get Report

,

Intel

(INTC) - Get Report

,

Bristol-Myers Squibb

(BMY) - Get Report

and

ATP Oil & Gas

(ATPG)

.

Cramer said this portfolio has great diversification.

The second caller's top holdings included

AT&T

(T) - Get Report

,

ConAgra

(CAG) - Get Report

,

Chevron

(CVX) - Get Report

,

Johnson & Johnson

(JNJ) - Get Report

and

Pfizer

(PFE) - Get Report

.

Cramer identified two of a kind with Johnson & Johnson and Pfizer. He recommended buying an industrial stock like Emerson or Nucor.

The third caller had

CPFL Energia

(CPL) - Get Report

,

Altria

(MO) - Get Report

,

Southern Company

(SO) - Get Report

,

Macerich

(MAC) - Get Report

and

General Mills

(GIS) - Get Report

as their top five stocks.

Cramer said Southern and CPFL were too similar, and this portfolio needed a health care stock.

Lightning Round

In the Lightning Round, Cramer was bullish on

Advanced Micro Devices

(AMD) - Get Report

,

Athenahealth

(AB) - Get Report

,

T. Rowe Price

(TROW) - Get Report

,

Qualcomm

(QCOM) - Get Report

and

Marathon Oil

(MRO) - Get Report

.

Cramer was bearish on

National Fuel Gas

(NFG) - Get Report

and

Sunoco

(SUN) - Get Report

.

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC

.

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by

clicking here.

For more of Cramer's insights during the Lightning Round, clickhere

.

At the time of publication, Cramer was long Cisco and Home Depot.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.