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James J. Cramer chatted on AOL Thursday, April 27, at 5 p.m. EDT. As with all chats, this transcript is unedited.

PF Trader:

Welcome everyone to another fast-paced hour with Jim Cramer from

TheStreet.com

. We're here to talk stocks, investing and the markets.

PF Trader:

Welcome Jim!

TSCNYjjc:

Hello everyone! Good to be here. Give me some hard questions!

PF Trader:

Well it's been a WILD ride since we last spoke. Let's get to it.

Question:

Do you follow infospace (insp) or itwo?

TSCNYjjc:

Yes, and he reported a simply excellent quarter today and gave some very positive guidance. He will be a survivor who prospers!

Question:

TheStreet Recommends

Thoughts on rates: How many more tightenings? Who benefits? Techs? Or Dow stocks?

TSCNYjjc:

This is the biggest question facing the market. I worry every day about rates because the

Fed

is behind the curve. But on days like today all of the bad news seems factored into the tech sector and they can rally. I think tech has bottomed but I am not sure about the rest of the market. Because more tightenings are coming. Maybe 75 basis points more.

Question:

What do you think of ICGE long-term once lockups expire in June? Also, ICGE as a way to play ARBA given they recently did a stock swap for a big chunk of ARBA?

TSCNYjjc:

I got fed up with the lockup expirations with ICGE. It just seemed that there was no level where people wouldn't sell. I feel better about Ariba and wanted to buy it today. Didn't get around to it.

PF Trader:

Looks like it's B2B Thursday ...

Question:

Do you have an opinion on the Co. Open Market?

TSCNYjjc:

No, that is not one of my closely followed plays.

Question:

Jim, is ATHM ever going to get its act together?

TSCNYjjc:

I don't think so. In fact I think that this is one of those stocks that has really hurt the

Nasdaq

as many people are long it. I much much much prefer AOL and YHOO to them.

Question:

What is better, AWE or NOK?

TSCNYjjc:

These are two big positions of ours. Nokia reported a fantastic number and AWE I think will be a great long-term holding, and I usually don't like tracking stocks.

Question:

What's your take on Commerce One at these prices (high 50s)?

TSCNYjjc:

I don't like it. I think that business has gotten too competitive.

Question:

Jim, what do you think of Foundry Networks (FDRY)? It never got the big kick upstairs that its great earnings report seemed to indicate. Of course, that report came out on Black Friday!

TSCNYjjc:

Foundry is a very good situation with excellent earnings that was pummeled by lockup expirations, it looks like it is being digested at last and can go higher.

PF Trader:

Jim, what about the Net infrastructure guys like INKT and AKAM. INKT had great numbers.

TSCNYjjc:

INKT is very solid. Akamai is too. These stocks got ahead of themselves and then got trashed and are now valued at somewhat high levels but not insanely high levels.

TSCNYjjc:

I wish that I were long them but they have become so insanely volatile that I have a hard time owning them these days. I am getting tired of the up 15 down 15 syndrome. That said, these are great but expensive companies.

PF Trader:

Me too!

Question:

Opinion on AMTD and EGRP?

TSCNYjjc:

I think these stocks have bottomed. I don't particularly like the brokerage stocks though in a period of rising rates because historically they have been a bad place to be in the cycle.

PF Trader:

Agreed, if the rates keep going up and trade volumes tail off the brokers are a bad place to be.

Question:

What are your most promising stock picks for this year?

TSCNYjjc:

I still stick by some long-term faves: csco, intc, sunw, yhoo, aol and NOK.

Question:

Do you believe the

Dow

is still significantly undervalued at this point? If not, which companies are you in favor of, for investors to consider?

TSCNYjjc:

I think the Dow is OK because of its tech exposure. I like T and INTC in the Dow. But most of the Dow is cyclical and that's where the problem is, because these companies tend to get hurt more from the Fed's rising rates than other companies. That's why the Dow for example was down today and the NDX was up big. That's the big dichotomy.

Question:

What is the target price for AOL by the end of 2000?

TSCNYjjc:

By that time we should have a resolution of the TWX deal -- I hope and I think the stock can go to all-time highs. AOL is the winner along with Yahoo! in this big dot-com shake-out and I think that it will get a very very high valuation when the smoke clears.

Question:

Would you buy Dell at $50.00?

TSCNYjjc:

We discussed this today and we decided to pass because we just don't have good insight into how Dell is doing right now.

Question:

I purchased Healtheon on your recommendation. It has lost 60% of its value since then. What do you think of the stock now?

TSCNYjjc:

I think you have the wrong guy. I have never been long Healtheon.

PF Trader:

LOL!

Question:

In light of the Nasdaq's performance today, do you think we've passed the bottom?

TSCNYjjc:

Yes, this was what was really killing us today, the possibility of missing a bottom in the NDX. I know that sounds undisciplined but I call it as I see it. I thought that we had an important move to the upside.

TSCNYjjc:

I thought that the whole market would move up so we were positioned for a rally, but the only part that moved was the NDX and we had to sell our

S&P

exposure because that is what gets hit on a tightening. We sold some banks and some drugs.

Question:

What do you think of Just Don't Sell Us now?

TSCNYjjc:

I thought JDSU had the strongest quarter of any company we own save PMC Sierra and Nokia. This one was a thing of beauty. By the way, NT was pretty great too, how long before good regional banks make a comeback ?

TSCNYjjc:

Those are a terrible place to be while the Fed tightens and I don't want to be in that group.

Question:

Which comes first, Nasdaq 3000 or 5000?

TSCNYjjc:

Nasdaq 5000 if you put a gun to my head.

Question:

Is GE close to maxing out or is there some room left for growth?

TSCNYjjc:

I read this great interview with Foster Friess from Brandywine this morning and he was talking about how GE was expensive. I think you buy it any time it dips personally.

Question:

Your outlook on WCOM please. Especially on stock price and Sprint.

TSCNYjjc:

Wow, this quarter took me by surprise. This was an excellent quarter, so many companies reported right here that I did not have time to do the work to get more comfortable with it and I really regret that. Instead I am Long T, which was getting hurt by sellers who were using the proceeds to buy AWE.

Question:

Let's say that MSFT loses all in court. How will that affect the many individual suits by other companies? Is MSFT in trouble because of these?

TSCNYjjc:

Oh boy, it will go lower. But I don't think this stock will see the $50s.

Question:

What is your opinion of BroadVision?

TSCNYjjc:

They had an excellent quarter and I really think that this one may have stopped going down

Question:

Jim, great to see you here. Comments on EXDS please. I have the stock and it has continued to fall after their earnings report. Thanks.

TSCNYjjc:

This is one where I thought that the revenues were a tad disappointing but enough is enough and I think that it is overdone at this point.

Question:

Where do you feel Cisco will be going both short and long term?

TSCNYjjc:

I think that Cisco goes to all-time highs and I am very comfortable with the position.

Question:

What is the outlook for Novell for the next six months?

TSCNYjjc:

This stock seems to have lost a lot of momentum and I would prefer not to be there

Question:

What do you think of Dow Jones stock? You used to be a large, do you still have stock in Dow Jones?

TSCNYjjc:

No, I sold that stock a while ago for a nice gain. They ended up doing a lot of the things I suggested. I have a cordial relationship with those folks these days and they are actually pretty good guys.

Question:

Your thoughts on Coca-Cola stocks?

TSCNYjjc:

I would much rather be long Pepsi, which is a better run company.

Question:

What is your rating on AMD?

TSCNYjjc:

AMD is doing a super super job and it has really put together a great line-up. I am long Intel but this one seems to be a winner now.

Question:

How did you get to be famous?

TSCNYjjc:

I LOST ALL MY HAIR!

PF Trader:

LOL!

Question:

What do you think about Verio, RX, LBRT? Thanks

TSCNYjjc:

These are three that seemed to have bottomed. I thought Liberate looked interesting at $35. There is so much carnage in the Nasdaq that I really want to buy a lot of these beaten-down names.

Question:

JIM, PEB down 20 today. What do you think long-term and would you start a position?

TSCNYjjc:

I thought this was overdone. I remember saying I thought this stock was dangerous on TV but I didn't think it was this dangerous. Oh my! Probably a buy here but I am not as current as I should be

Question:

Thoughts on LSI Logic?

TSCNYjjc:

I tried to buy that stock all day and chased it higher and higher and never got any. I sure hope it comes down tomorrow.

Question:

Jim, when will it be time to sell CSCO and SUNW?

TSCNYjjc:

I think these are leadership questions much like at GE. As long as these current management teams are in place I want to be there as they are extremely well run companies.

PF Trader:

Ride the winners!

Question:

Is Lucent a good short-term buy?

TSCNYjjc:

I would prefer NT, Cisco and JDSU but they have definitely gotten their act together and they have a great new CFO.

Question:

Will I be glad five years from now that I own a bit of Inktomi?

TSCNYjjc:

I think you will be, that is a great Internet plumbing play.

Question:

Jim Cramer, do you think Hughes (GMH) has a mega winner on it's hands with DirecTV?

TSCNYjjc:

I think it does, and I think that I should have been buying GM at some point today.

Question:

Your three favorite picks for remainder of 2000?

TSCNYjjc:

Nokia, intc, csco.

Question:

Jim how are you hanging in there? You seemed pretty fooled by the market recently?

TSCNYjjc:

I think that is an excellent question. We are up nicely for the year and are very reluctant to jump in too aggressively but at the same time we think tech has bottomed.

TSCNYjjc:

I mistakenly thought everything else might have been done going down but that proved to be wrong. I admitted that I was flummoxed this morning and pointed out that many professionals are but they won't admit it.

Question:

Cramer ... we miss seeing you on "Squawk Box" .... how come you are never a

Question:

guest commentator anymore?

TSCNYjjc:

I sure hope we can work something out. They are a great bunch of guys.

Question:

What's your opinion on jnpr?

TSCNYjjc:

I sold my Juniper today and it was stupid because business is great. I thought we were too exposed to that group. That was dumb.

Question:

What do you think of Rambus?

TSCNYjjc:

I think that is the hardest stock I have ever seen to trade. I won't touch it.

Question:

What is your view of CPQ in next 12 to 18 months?

TSCNYjjc:

I think this stock will stall until we see how the second quarter goes and I sold it the other day when it reported earnings.

Question:

Do you see the fiber-optic sector overpriced right now and specifically Nortel?

TSCNYjjc:

No, I think this is still the hottest sector in the world and I don't think that NT is overprice.

Question:

JJC, has Advanced Micro Devices finally turned a corner, or is this a pig waiting to get slaughtered?

TSCNYjjc:

No, it is going higher.

Question:

Hello Jim, thoughts on VERT please.

TSCNYjjc:

That is the best of the auction stocks.

Question:

Jim, what's your opinion on the strength of the semi's near term?

TSCNYjjc:

They are also going higher!

Question:

Is

Matt Jacobs

real? And where is JDSU right now?

TSCNYjjc:

Matt "Just Don't Sell Us" Jacobs is real and he is a great guy. He was the one who was shouting at me to buy JDSU at $87 -- running in here saying "they are wrong they are wrong they are wrong." It was a great great call. He is the best!

Question:

Your comments please on future of Owens Corning?

TSCNYjjc:

I like that management team but you are talking about a big cyclical company. Perhaps you mean corning glass, which is a fabulous company and a great stock.

Question:

Where do you think Intel is headed and is there a split in the future for this stock?

TSCNYjjc:

I know they usually do split the stock at this level and I think the stock could trade to the $150s, $160s.

Question:

What is your opinion on phone.com? I'm thinking of buying at this level.

TSCNYjjc:

I think this stock and wireless devices in general are buys. The tough thing for me is that we own so much in this sector, we are gun shy about owning more.

Question:

Do you think we'll retest last week lows?

TSCNYjjc:

NO.

Question:

Many are expecting an interest rate increase of 50 basis points. Has the market factored this in?

TSCNYjjc:

Yes, it has factored in 50 but I don't know about 75.

Question:

If the Nasdaq is the real enemy of the Fed, and raising margin requirements would probably bring down the Nasdaq, do you think this is an option for

Greenspan

?

TSCNYjjc:

I think it is but he has said no to it, which is wrong in my opinion.

Question:

Now that the B2Bs have reported great numbers, what does the rest of the year look like for them?

TSCNYjjc:

I think we have to go through the May lockup period to really see how this group trades.

Question:

What do you see long- and short-term future for excite?

TSCNYjjc:

I don't see that much there frankly. I like AOL and YHOO much more.

Question:

Would you be fully invested at this time in tech?

TSCNYjjc:

I am not fully invested in tech myself as a firm but I have to tell you that I am much more confident about tech than I was a few weeks ago.

Question:

What about the retail sector. My HD stock is at a standstill and hasn't done much in the last two to three months.

TSCNYjjc:

I think this is a tough sector to invest in when the Fed is tightening but that HD is a great stock and a great company.

Question:

What is your opinion on TQNT and the semiconductors as a group? Thanks.

TSCNYjjc:

This had one of the best quarters of any of the companies we follow.

Question:

Is there really that much money on the sidelines waiting to go back into the market as most analysts are saying? If so, do you think it will work its way back to tech?

TSCNYjjc:

There is a ton of money on the sidelines, which is amazing but we are a very rich nation and I think it will come back to tech.

Question:

What do you think the chances are of a Fed-induced "recession" in the next 12 months?

TSCNYjjc:

I think it is extremely unlikely but that we could have a soft landing as people pull back from spending to have their money in high-yielding risk-free instruments -- sidelined cash.

Question:

Is Loral in play or a possible buyout or merger partner?

TSCNYjjc:

I don't think so.

Question:

What is your outlook on LSI Logic?

TSCNYjjc:

I am going to buy it tomorrow if it comes in.

Question:

Jim does your tenet regarding auditors cover the current situation for MSTR? Love your Diary.

TSCNYjjc:

I am sorry but it is too hard to own that stock.

PF Trader:

Pretty soon they'll pay you to own it!

Question:

What's your favorite tech stock now?

TSCNYjjc:

I think that it is a tossup between csco and intc.

Question:

Why was the reception for AWE so lukewarm today? According to the IPO page their 98 earnings were >750 m, so even with 360 m shares their earnings would be about $2.00/share. And with over 10 b of cash they can do a lot of acquiring and/or expansion?

TSCNYjjc:

I think this market has some recuperating to do and people are a little gun shy about new issues but that this stock held in well. I thought it was a good do and I kept it and bought more.

Question:

Do you look favorably upon the NSOL & VRSN merger?

TSCNYjjc:

Yes, very much so. In fact in the frenzy that was this morning we sold vrsn up 10 and it went up another 10! Ouch!

Question:

Are you still long BA after Hopkins left?

TSCNYjjc:

Nope.

Question:

Jim: Site is indispensable -- especially during these turbulent times. What advice would you give to someone starting out as a trader?

TSCNYjjc:

First, you want to be sure that you have a set of disciplines that you will not violate. I go into this extensively in the best of Cramer section on the site. Thanks for your nice comments.

Question:

Is CMGI lower than deserved?

TSCNYjjc:

At this point it seems oversold, yes.

Question:

Jim, is it safe to sell a stock at its daily high and buy it back a few bucks lower, and do this many times to accumulate more shares?

TSCNYjjc:

It is not what I do although I do trade around positions constantly as you can tell from my diary.

Question:

What do think of Agilent? It's seems good value right now. Would you buy or wait until HP distributes the remaining shares in June?

TSCNYjjc:

I think you should wait for the distribution but I agree that this company seems to be doing many things right.

PF Trader:

Jim, thank you again for talking time to chat with us today. Always a pleasure Sir!

TSCNYjjc:

Thanks PF Trader! Thanks AOL, and good luck in these tough markets!