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All the core bits of computers have been "crashing in price," Jim Cramer told viewers of his "Mad Money" TV show Thursday. And all tech shortfalls spell one thing: "There will be a major upside surprise coming on May 16 for
Tech companies are imploding, but H-P, which Cramer owns for his charitable trust,
Action Alerts PLUS, is a stock he likes.
H-P, he explained, doesn't sell chips or motherboards -- or any other computer parts. Instead, it buys these parts from other companies so it can sell computers and printers, Cramer said.
Even though it's not the right season to be in tech, not all tech stocks are created equal, he said. "Don't confuse the forest (tech) for the single tree (Hewlett-Packard)."
With H-P, investors have "a great margin story," because even though all of its computer parts suppliers are charging less money for their products, H-P is not selling its computers for any less, Cramer said.
He believes that HPQ should have a better-than-expected quarter and that people should get in before it reports after the close on May 16.
Cramer said he is predicting this is because the company's costs have dropped; it charges pretty much the same price for its products; and the analysts haven't noticed and so haven't increased their estimates.
Plus, H-P is highly levered toward the rest of the world, he added. Currency-exchange rates could add as much 5% to 6% to the company's bottom line with its percentage of overseas business, Cramer said.
"The currency factor is yet another reason" H-P should blow away expectations, he said.
Someone's in the Kitchen With Corning
"On 'Mad Money', there is a categorical order to discriminate," Cramer told viewers. "It's what we have to do when it comes to tech stocks."
is a tech company that has three businesses, which are "firing on all cylinders." The stock is back down to $24 and ready to run, he said.
Cramer said he likes how Corning "uniquely knows how to reinvent itself." Back in the day, he said, it was a kitchen play, with a TV screen component, and then it got into fiber in a big way.
Now, Corning's getting into clean engines, like it got into fiber in the late 1980s. And that hasn't been factored into the stock yet.
For its new division, Corning has picked up
as customers, Cramer said.
While it's great that Corning is able to reinvent itself, at heart it's still an LCD (liquid-crystal display) company, he said. For a while the sector was "shaky," but it's becoming more stable.
Sure, there are some skeptics who worry about a telecom-spending bust and a big drop in LCD glass prices, but that's wrong, Cramer said. He admonished investors to get into Corning before others start to notice it -- when its new business really takes off.
Cramer said that he could spend the "Sell Block" segment praising himself for a job well done in stocks such as
or Cummins, but "there's nothing to learn from that." Instead, he delved into his mistakes, telling viewers what he learned in each case.
would have a good quarter, but it didn't.
Now it's down $8 from its high and is sitting at $118. This, Cramer said, taught him that people should declare victory when they're already up big. Also, he believed that
Procter & Gamble
could have been a "blue chip" like
, but Cramer was wrong about that, too.
case, he failed to anticipate that
could get approval for its Botox alternative drug. And with
, Cramer said he shouldn't have recommend a stock after a big run.
Don't get smug because a stock has performed well, he said.
Cramer learned that his game plan can't be so hard core and that he needs to try to be more flexible. And
, which he "really blew" taught him not to play a fad after it's been played out. In Andersons' case, the fad was ethanol.
, Cramer said he was less focused on the company's domestic business than he should have been.
"Celebrate your wins, but learn from your downside and
downside," he said.
Celgene's Right Stuff
Cramer welcomed Robert Hugin, president and COO of biopharmaceutical company
to the show.
Hugin said he was unsure why the stock went down after reporting a great quarter.
"It's certainly very strong results, strong top-line growth, 61% revenue increase -- and even with all we've invested in the future, the bottom line is that the adjusted earnings per share increased by 122%," he said.
"So I think it was a very good balance of good execution, but very much forward-looking, to build for the future," where there's lots of promise, he said.
Hugin said that Celgene is expecting to launch its Revlimid drug in almost 30 European countries in the next few months.
When Cramer asked Hugin about the company's $2.1 billion in cash and if it were thinking of making an acquisition or being acquired, Hugin said Celgene is "looking to build long-term value."
Celgene doesn't need to do anything, Hugin said, but if the right opportunities came along, the company would look at them.
Every now and then people get a chance to make money when the market is wrong, Cramer said. "Celgene is a 'back up the truck' situation."
During the "Sudden Death" round, Cramer was bullish on
Cramer was bullish on
GOL Linhas Areas Inteligentes
Reliance Steel & Aluminum
Cramer was bearish on
For more of Cramer's insights during the Lightning Round, click here
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At the time of publication, Cramer was long Union Pacific and Hewlett-Packard.
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