This column was originally published on RealMoney on May 16 at 1:54 p.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
The truth is coming out about tech: It stinks out there.
For weeks on end, we have had to put up with the notion that the semiconductor-equipment companies were doing fabulously,
the end markets were
. Then, we got the
It was like a reality check that no one expected because the analysts have been recommending this stock left and right, even as recently as this week.
To make an analogy to this silliness, these upgrades and praises were happening in a way that would be as if the auto-parts makers were doing great while the auto companies were cutting back, or if the aerospace suppliers were on fire while
orders were plummeting.
The analysts in this segment
could not resist
getting behind a stock that they saw going up every day. This was the worst kind of non-rigorous thinking. Painful, costly and stupid.
There will come a time when tech is right -- probably three months from now. Until then, they -- and you -- should sit on your hands with the exception of
now that it has run so much.
Otherwise, stay away. And stop believing the hype; other than
, no semi company is in a position to buy new equipment nor needs it. To me, it looks like Texas Instruments would rather buy back stock and increase the dividend than give
, Applied Materials,
Kulicke & Soffa
There's craziness in Buffett-land today. As I have been saying for some time, if you buy after Buffett discloses he bought, you have not outperformed the S&P. ...
Johnson & Johnson
doing well, and I would sell it up here.
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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