Cramer's 'Mad Money' Recap: The Lure of Semiconductor Stocks (Final) - TheStreet

Cramer's 'Mad Money' Recap: The Lure of Semiconductor Stocks (Final)

Cramer says chip stocks are a secular growth play that is thriving from the boom in digital gadgets, cell phones and e-book readers.
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NEW YORK (

TheStreet

) -- "The semiconductor stocks are back," Jim Cramer told the viewers of his "Mad Money" TV show Monday.

He said after a decade of being trapped by the prevailing business cycles, the semis now have both cyclical and secular growth trends going in their favor, and the analysts haven't even noticed it yet.

Cramer said he poured over the conference calls of dozens of semiconductor stocks over the weekend, and company after company delivered blowout earnings that were just too large to be written off as strength from a recovery global economy. He said the semis are clearly benefiting from both the cyclical economic trend as well as something more.

The something more, he said, is a long-term secular boom in digital gadgets, from cell phones to e-book readers and from smart electric power to smarter cars. He said the rising middle class in China and India alone accounts for over 700 million people, and that's just the beginning.

Cramer said it's clear that the Wall Street analysts are blinded by over a decade of disappointment from the semiconductors, a group that's disappointed since the PC boom of the 1980's and the Internet boom of the 1990's. Cramer said the analysts are dismissing the trend as routine growth, which is a mistake, and an opportunity for investors to get in ahead of the curve.

Cramer said clearly that he doesn't care which semiconductor stock investors choose, as long as they choose at least one for their portfolio.

A Bridge Fuel

Cramer interviewed Rep. John Sullivan (R., Okla.), about his efforts to bring natural gas into the mainstream of America's energy policy.

Sullivan shared Cramer's view that natural gas needs to be the bridge fuel for America to ween itself from foreign oil until alternative energies like wind, solar and biofuels can come into fruition. He said the country has 120 years of natural gas reserves and it makes no sense that we're not using it.

Sullivan noted that of the 10 million natural gas vehicles around the world, only 150,000 of the them reside in the U.S. He said we "need" more natural gas vehicles on the road, and we need them now.

When asked about environmental opposition to natural gas, Sullivan said the arguments are simply made up. He said that hydraulic fracturing and horizontal drilling have not been linked to a single case of pollution or harm to the environment.

Cramer and Sullivan agreed that investing in a natural gas infrastructure would create as many as one to two million new, high-paying, private sector jobs for America and the Senate needs leadership to push the Natural Gas Act and other legislation through despite President Obama's lack of support for the fuel.

Hasbro's Dividend Play

Investors could've seen the earnings beat at toy maker

Hasbro

(HAS) - Get Report

coming, Cramer told viewers, if they had been paying attention to the company's dividend boost last Thursday.

Cramer explained that nothing shows a company's strength more than when it boosts its dividend, and that's why when Hasbro boosted its dividend by 25% last Thursday, investors should've seen the company's 28-cent-a-share earnings beat coming. "That's a true sign of strength," said Cramer, who was once again bullish on Hasbro.

Hasbro is a lot more than just Monopoly, Cramer told viewers. That's why he recommended the stock on July 19 and is up 38% on that recommendation. Cramer once again sang the praises of high-paying dividend stocks, such as the benefits of compounding dividend and the protection dividends offer against large sell offs in the stock.

Cramer said Hasbro is just what the doctor ordered in a chaotic market. He said the company earns more than twice its dividend payout, his minimum benchmark, and the company's entertainment licensing revenues were up 48% year over year.

Cramer said with several blockbuster movies like

Iron Man 2

and

Toy Story 3

on the horizon, Hasbro should continue to deliver the stock, and dividend, growth investors are looking for.

Mad Mail

Cramer told a viewer that

Mattel

(MAT) - Get Report

is not as good as

Hasbro

(HAS) - Get Report

, but it's a good company.

Cramer told another viewer that he's still a believer in

Apple

(AAPL) - Get Report

, but he did lower his price target on

Google

(GOOG) - Get Report

because of the company's friction with China.

Cramer told a third viewer that he does not like

Atmel

(ATML)

as much as rival

Skyworks Solutions

(SWKS) - Get Report

.

Cramer told a final viewer that

Nucor

(NUE) - Get Report

remains his favorite steel stock and he'd continue to stick with it.

Lightning Round

Cramer was bullish on

Nike

(NKE) - Get Report

,

SPDR Gold Shares

(GLD) - Get Report

,

Eldorado Gold

(EGO) - Get Report

,

Gilead Sciences

(GILD) - Get Report

,

Visa

(V) - Get Report

,

Church & Dwight

(CHD) - Get Report

,

Clorox

(CLX) - Get Report

,

Colgate-Palmolive

(CL) - Get Report

,

Potash

(POT)

and

Terra Nitrogen

(TNH)

.

He was bearish on

Silver Standard Resources

(SSRI)

.

-- 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 Gilead Sciences, Visa.

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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