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NEW YORK (
) -- "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
is getting stronger by the week.
confirmed on its earnings calls just last night that DRAM prices are up 25% due to strong demand.
is also seeing strength across the board with its big clients like
indicated it sees strength in North America, Europe and Asia across its 130,000 customers.
said its seeing accelerating growth going into the first quarter.
7. The CEO of
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
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
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
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
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
, a stock which he owns for his charitable trust,
Action Alerts PLUS, or
, is now.
"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
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
ATP Oil & Gas
Cramer said this portfolio has great diversification.
The second caller's top holdings included
Johnson & Johnson
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
as their top five stocks.
Cramer said Southern and CPFL were too similar, and this portfolio needed a health care stock.
In the Lightning Round, Cramer was bullish on
Advanced Micro Devices
T. Rowe Price
Cramer was bearish on
National Fuel Gas
-- Written by Scott Rutt in Washington D.C.
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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."
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