CHAT: On the Hot Seat - TheStreet

James J. Cramer chatted on Yahoo! on Thursday, Feb. 10, at 5 p.m. EST. As with all chats, this transcript is unedited.

ChatYahoo_Lisa:

Cramer is here!

Creme_Delacramer:

Wow, great to "see" everybody--for my BIRTHDAY CHAT!!

chowda1 asks:

Hello JJ, How can you continue to remain bullish on tech when many of these stocks have nothing short of world domination already priced in?

Creme_Delacramer:

Chowderhead, you are way too bearish. As long as these companies execute they are going higher.

swamibalas asks:

Cramer, I am a great fan of yours. Thanks for the wonderful TSCM !! How much market exposure would you advice?

Creme_Delacramer:

This is a very hard question because MOST of the market is awful. So you must keep some powder dry. We are playing with a very healthy cash position and loving it.

Doyle3338 asks:

FFIV and CPWR - good sectors, good earnings, good growth, crappy stocks - what's your take?

Creme_Delacramer:

I disagree twice! First FFIV has done very well and has responded to its numbers. Second CPWR DOES NOT have good numbers and you, Doyle 3338, know it and must think that I don't! Hah!

DWALF50 asks:

Jim- Do you see anything more than a 10% Nasdaq correction anytime soon?

Creme_Delacramer:

For the S&P I see more than that. I think some sections of the S&P could be down 25% so I wouldn't bottom fish yet.

dlinpv asks:

What are your fav biotechs?

Creme_Delacramer:

I like Human Genome Sciences and Imclone (long both) and I wish I could get back into millennium.

jotobias asks:

Hey Jim, Opinion on Cabletron and Ciena?

Creme_Delacramer:

We just sold a little Tron up here at $35 but think there is more good news to come. We missed cienna and it makes us sick to our stomachs that we did!

hcnerf asks:

You know we have to ask... You mentioned that you'd buy DELL after the warn. Do you still have a position?

Creme_Delacramer:

No, it went up too much and didn't go down enough to dig in. We are on the conference call as I write this.

cag8929 asks:

Jim, Is there any hope for PCOR? Or has it been

Creme_Delacramer:

I don't think it is a has-been. That was not a stellar quarter and the company is extremely hard to understand. Whenever you have a situation like that it is dreadful.

teddyd007 asks:

Short and long on pepsi?

Creme_Delacramer:

I would go short and stay that way a long time!

mtvrocks2000 asks:

YHOO split tomorrow, do you think it is good buy?

Creme_Delacramer:

I am long it and bought more this morning.

mkttrailer asks:

Home Depot's been flat awhile. Is it now simply a "market performer"?

Creme_Delacramer:

Nah, HD is the real deal but boy do I hate retail when the fed is tightening.

dlinpv asks:

What do you think of the fuel cell stocks??

Creme_Delacramer:

I missed this move and I think that it is not a real move so I won't buy on a pull back. It is a real mania.

cheesesteak99 asks:

JC, love TheStreet.com! Do you see a top in old techs like CSCO when money stops moving out of S&P stocks?

Creme_Delacramer:

No, because that will take years, Mr. Philly Cheesesteak, and for the record, while I had Jim's at my birthday I am a Geno's man.

Demographics asks:

True or False?: 10,000 in Berkshire Hathaway becomes 1 Million+ in 30 years.

Creme_Delacramer:

False. Unless Jimmy "I love Tech" takes over for Warren "I hate tech" Buffett.

ohiofire5 asks:

Jim you said Banks in 2000 What about BANK ONE?

Creme_Delacramer:

This one is really hurting. Something smells there, probably that credit card division. I had to take a loss in this one and move to a higher quality bank like CMB.

honey_crash asks:

Any hope for etys?

Creme_Delacramer:

NO.

sspencer333 asks:

Will Linux stocks ever make money?

Creme_Delacramer:

NO.

managepro7 asks:

Hey Jim what do you think of GBLX???

Creme_Delacramer:

Everybody loves it so I don't have to.

ggecko0 asks:

Are the incubator stocks like cmgi and icge dead money for now?

Creme_Delacramer:

I think CMGIs the best incubator stock. I don't think they are done, Blue Horseshoe.

friskymule asks:

Jim, enjoy TSC, on-line brokers, we ever gonna get popular again?

Creme_Delacramer:

This has been a difficult period for these guys. I remain long some etrade but it is not working.

Creme_Delacramer:

Oop-s---we worked it off today. I thought we still had a little. It got sold when I was reading books at kindergarten!

g_hagopian asks:

What do you think of qcom?

Creme_Delacramer:

I think it is good, not great as I did not like the guidance after the last quarter.

drasw asks:

First Jim, loved what you wrote today about reading in your daughter's class. What do you think about AXP?

Creme_Delacramer:

It has had a huge move. I would wait for a pullback.

agenbite_of_nitwit asks:

Citi still a good hold?

Creme_Delacramer:

I think it is.

sspencer333 asks:

Why do you hold core positions in stocks that you believe will go down?

Creme_Delacramer:

Oh boy, I have news for you. When I own a stock like Yahoo and I think it might go down a bit, I am taking a perspective which says, longer term it will go up and I don't want to lose it.

Creme_Delacramer:

Take cisco--there have been many times when I was worried cisco would go down short term, but not long term so I stuck with it. Now it passes GE. You have to take some short-term.

bastazulu asks:

JC, when will AOL make us rich again?

Creme_Delacramer:

Pain now and then to make BIG money. How many times does it have to do that? We only have to get rich once!!!!

ohiofire5 asks:

EBAY What's your Outlook?

Creme_Delacramer:

I am long Ebay and was very happy with the last quarter which was quite strong. This company has become very well run.

EQQL asks:

Jim talk to me about lucent.

Creme_Delacramer:

If you will listen: sell lucent.

marr_marr asks:

What do you think about ual and other airlines?

Creme_Delacramer:

Good to fly with, terrible to own.

gardinermg asks:

VTSS or PMCS?

Creme_Delacramer:

Easy--I am long PMCS and think it goes higher. VTSS--no thanks.

actour22 asks:

What about CHKP?

Creme_Delacramer:

What are you doing Scott, looking at my sheets? I am long chkp!!!

gkw_wink asks:

Are you thinking of diversifying to stocks outside the US?

Creme_Delacramer:

We own quite a few especially of the Scandinavian variety but also Israel, Latin America and Asia.

Wisc_badger asks:

Do you think amazon will fold up like a cheap chair?

Creme_Delacramer:

Hey Badger, check out my piece just posted: the answer is NO!

SpearmanST asks:

When will someone offer a NDX or Nasdaq index fund?

Creme_Delacramer:

I think Genius Steve that you can already find them, rydex has one.

hellios_4 asks:

Now that there seems to be a real effort to eliminate the USA debt and along with it the 30-year bond what will take their place?

Creme_Delacramer:

The ten-year is the benchmark like in Germany or the UK.

JJCfan asks:

What tech stocks, if any, are undervalued now that you are buying?

Creme_Delacramer:

Don't confuse valuation, fan-o-mine with my ownership. Our techs are all overvalued but that's not a factor right now.

stockpicker89 asks:

Please tell us why I should upgrade my subscription to the new site?

Creme_Delacramer:

Because you will only be able to get me real-time through realmoney.com YOU want stale cramer?? You like me with mold? Or do you like the real deal? Enough said.

heymrbill3000 asks:

Any hot IPO's coming soon?

Creme_Delacramer:

I rely totally on Ben Holmes on our site for that, so you can get the same info I have.

robert23 asks:

What do you think of the 3 new Merrill Lynch internet/B2B HOLDRs?

Creme_Delacramer:

I think these are great instruments but they haven't been priced yet.

stock_trader_nick asks:

Jim, CNET looks extremely cheap for a tier 1 Internet company. Do you agree?

Creme_Delacramer:

Nick, you are talking your position although I do believe it is cheap.

jimmymac2323 asks:

How long until B2B gets going again?

Creme_Delacramer:

We have to put away a lot of secondaries before that happens.

upacreek_2000 asks:

Jim 5 stocks to buy right now as core holding for next five years

Creme_Delacramer:

Here's your paddle: Yahoo, AOL, SUNW, NOK, CSCO.

cpoe98 asks:

Do you have any thoughts on IFMX?

Creme_Delacramer:

IFMX--is just okay.

teddyd007 asks:

What sectors do you like for the next 12 months?

Creme_Delacramer:

TECH and some banks.

cheesesteak99 asks:

JC, I'm holding some GE at 150. What would you do?

Creme_Delacramer:

I would stay long -- add a little hot sauce! :)

scd6363 asks:

Happy Birthday, what do you think of RoweCom?

Creme_Delacramer:

Thanks! I met with them last week and frankly I don't know, it is not a great story.

kenowen asks:

Is ADAP too small to discuss?

Creme_Delacramer:

YEP!

rickshari asks:

At this rate every fund will be 50% CSCO, is that healthy?

Creme_Delacramer:

I don't know, I am worried about the other 50%!!!!!!!!!!!!!!!!!

fmdawg asks:

How do you see grocery stocks like kroger and safeway doing over the next 5 years?

Creme_Delacramer:

I don't see them doing anything except going down sorry.

bo42753 asks:

Will the Dow ever get hot?

Creme_Delacramer:

Sure, right now it is simmering.

gsmith4 asks:

Jim, what are the stocks to play for this "denial of service" stuff??

Creme_Delacramer:

Check point and ISSX--I am long them.

indxarb asks:

UPS you still a believer?

Creme_Delacramer:

Somewhat but that was a not great quarter.

blair1q asks:

What about DIS? Is Bob Iger what Eisner needs?

Creme_Delacramer:

They had an okay quarter. I would buy it lower. Go needs to be broader, have more than just entertainment.

hsun7 asks:

Are you still negative on PCs? How about Dell?

Creme_Delacramer:

Yes and no--meaning yes I am negative and no I don't want dell.

teddyd007 asks:

Jim where do you see health stocks going?

Creme_Delacramer:

Lower.

Wisc_badger asks:

Still own BUD, Jim?

Creme_Delacramer:

Gave up on it. Blame the ATKINS DIET!

nahualpa asks:

How will the Vodafone Airtouch (VOD) acquisition of Mannesman position it in the global telco race?

Creme_Delacramer:

We want to get long some Vodaphone. That company is very well run.

hsun7 asks:

Would you buy semiconductors NOW?

Creme_Delacramer:

Can't, I own them already.

GHuhn88397 asks:

Jjc, are you short anything now, or have any puts?

Creme_Delacramer:

Sure. (besides shopping centers!--hoo-hah) we have puts on a bunch of drug companies.

bluesea888 asks:

Will the FED keep on raising rate until the Nasdaq crack?

Creme_Delacramer:

Boy, they are going to have to take them up big because this movement is not going to stop them.

hellios_4 asks:

Are there any facts in the market or is purely speculation that it will continue upward?

Creme_Delacramer:

I don't get that. Facts? What are facts? It is a market of psychology not facts. This is not an empirical game as much as people might want to make it into one.

PankoTheBeekeeper asks:

Why does Priceline keep going down? What's it going to take to turn it around?

Creme_Delacramer:

We made some good money in that one. I think that PCLN will be good for the rest of the year.

dmm1529 asks:

Any thoughts on Corning? Did you know OAK before they took them over?

Creme_Delacramer:

Yes, actually Jeff and I got long OAK years ago but sold it much lower. We know corning but to be candid we play the sector with JDSU.

sspencer333 asks:

If go.com has one third the revenue of YHOO, how can the market justify 1/20 the market cap?

Creme_Delacramer:

Cause one company is run very well and I won't say how the other company is run cause I am a real nice guy.

little_buffett asks:

I have been margined for 3 years and made a killing with your RED HOTS! But when do you know when to pull your chips off the table? How long can this go on?

Creme_Delacramer:

Bulls bears and pigs, my little Jimmy/Warren. I say take some off yesterday. I would not be leveraged here.

miguelyanes asks:

AT&T is a good choice?

Creme_Delacramer:

I bought some today. I like that wireless business.

amski2 asks:

How low will LU go?

Creme_Delacramer:

40s?

jpmoney2888 asks:

Jim, what about optx?

Creme_Delacramer:

Don't know them so have to pass.

BigMover asks:

Why is MO, the merchant of death, still in the Dow?

Creme_Delacramer:

Cause the Dow has no conscience, it is just an index. Otherwise, I don't think the Dow could live with itself.

akcvfc asks:

Would you hold Mediaone?

Creme_Delacramer:

That's a push for me.

HeartsInTheHighlands asks:

BRCM...for the grandchildren??

Creme_Delacramer:

Holy cow, Broadcom has been unbelievable. I would wait for a pullback.

joedg asks:

AMAT: really worth it up here??

Creme_Delacramer:

Yes.

Niederhoffer asks:

Jim - many "pundits" talk of a correction possible etc, but how will they ever be right when many tech stocks go up 10 fold and could really only come down 50% or so

Creme_Delacramer:

Vic--I am a doer not a pundit. I don't know from pundits.

greenxnm asks:

Where's Qwest going?

Creme_Delacramer:

Higher.

ohiofire5 asks:

What's your feelings on NVDA?

Creme_Delacramer:

I don't have a line on that one. That's Matt "NVIDIA" Jacobs' stock.

little_buffett asks:

What percentage cash are you?

Creme_Delacramer:

35%

JJCfan asks:

BAC seems very cheap. Which financials are you a buyer of now?

Creme_Delacramer:

BAC, CMB, GS.

tjschill asks:

Do you like COF or PVN here as a contrarian play?

Creme_Delacramer:

They are down huge, just huge but I still have no appetite for them.

jpmoney2888 asks:

Jim, are you still bullish on Compaq?

Creme_Delacramer:

Not really, as that quarter wasn't great and Jim Seymour made me very nervous. If you don't read Seymour I hope you have something to say when I meet you.

chadburnette asks:

Do you think Europe will be a good play this year?

Creme_Delacramer:

Excellent play, just excellent.

stockpicker89 asks:

What do you think of margin rates?

Creme_Delacramer:

I personally wish they were higher frankly. I want to discourage leverage up here.

mbnsea asks:

ERICY ... going lower? or higher?

Creme_Delacramer:

ERICY is a winner. I am long it.

ra7706a asks:

JJC, do you see MO possibly declaring Chapter 11 in the future for its tobacco operations? The deluge of lawsuits will never end, and one word - asbestos.

Creme_Delacramer:

I think they should. I would like very much to be running that company and I would do the folllowing: I would put the tobacco company into a trust to pay off all of the damage that it has done and will keep doing and then I would let Kraft run free. They could do this in chapter 11. It is the only way out.

Can't believe they haven't done it already. These guys have no idea about the power of the mass tort bar. I have studied that mass tort plaintiffs bar, it is the MOST POWERFUL group of people in the country. It cannot be beaten. It is too well financed.

vsugihjoso asks:

When do you think AOL will start rebounding to the old high?

Creme_Delacramer:

You have to digest more arb pressure. Nothing yet.

paramount2 asks:

What is the problem with Dupont?

Creme_Delacramer:

It is a big cyclical company and the cyclicals don't rally in the midst of a tightening.

jimmymac2323 asks:

Long and Short on VISX

Creme_Delacramer:

Shorty.

pkiper asks:

Jim, still like CPQ? Happy birthday!

Creme_Delacramer:

Thanks and I am not really into CPQ now that Seymour has kiboshed it. Seymour knows more about that space than Matt "Call me Dell" Jacobs.

gogowings asks:

Are chip stocks (like xlnx,lsi,cy,etc.) too hot right now?

Creme_Delacramer:

I don't think so. Man have you seen LSI? What a ramp. I still like PMCS.

ra7706a asks:

HD and TJX ? Good retail plays?

Creme_Delacramer:

Yes if you like retail. I would rather shop there than own the stocks though.

JMCKHELM asks:

Do you like CIEN at these levels? Huge move today.

Creme_Delacramer:

That move was mine to catch. I wanted it so badly. But I missed it.

EQQL asks:

Is texas instruments a great hold?

Creme_Delacramer:

I am long it, it has great fundies and it is a strong stock.

Wisc_badger asks:

Buy any HWP?

Creme_Delacramer:

I am long it and think it works higher.

stockpicker89 asks:

What do you think of NXLK???

Creme_Delacramer:

Not there on that one.

prezjeff asks:

What about drugs, oil and gold (SWS)?

Creme_Delacramer:

Names me three sectors I hate?--oops thought I was karnak.

SAILOR64SD asks:

You didn't use to think AAPL was the real deal. Change your mind?

Creme_Delacramer:

Yes, I was WRONG! I call my column wrong because I am not afraid to say I was wrong. I am long appl.

mstick99 asks:

Any thoughts on SEPR?

Creme_Delacramer:

These guys seem pretty good to me but I am not long it.

santabarbarian996 asks:

Any thoughts on I cahn's play with ngh?

Creme_Delacramer:

Two losers; made for each other.

nordmende asks:

Any interesting German stocks?

Creme_Delacramer:

I have much work to do there. I haven't done it.

kelsue17 asks:

Kana?

Creme_Delacramer:

Kana, the dog? Which I like. Kana the product, which keeps breaking. Or Kana the stock? Which bagged everyone with that giant steaming acquisition? I don't like KANA.

babel57 asks:

Jim, what about your call on AHP as a speculation last week. Still hanging in?

Creme_Delacramer:

Yep.

cag8929 asks:

Jim, Is there any hope for PCOR, or has it been left for dead?

Creme_Delacramer:

As I said earlier I think the company may be too hard for wall street to understand.

DODGER_28 asks:

Long or Short on BEAM?

Creme_Delacramer:

Neither but who needs it??

klefnaoui_98 asks:

Exds and acru, your thoughts??...thank you.

Creme_Delacramer:

I like exds and I think acru is good but I am too leveraged to that area of web implementers to own both so I own exodus--movement of the people!

scottanotherpro asks:

Jjc, are you still long Portal Software?

Creme_Delacramer:

Yes and I bought more today.

nordmende asks:

Did you take a look at Echelon (ELON)?

Creme_Delacramer:

Sorry I didn't get a chance to.

upacreek_2000 asks:

Jim hear rumors of csco buying afci?

Creme_Delacramer:

Spoken like a true tout Upacreek. Cisco would have bought that company at 10 if it wanted to. You don't need to promote it in my zone.

sspencer333 asks:

What's your opinion of daytraders?

Creme_Delacramer:

Love 'em.

LavaLee98 asks:

EMC?

Creme_Delacramer:

Goes higher.

norman23brad asks:

Will 3Com shareholders get shares of the Palm IPO?

Creme_Delacramer:

Yes.

miwalsh25 asks:

Are there any undiscovered tech stocks? I read and read and they all seem discovered?

Creme_Delacramer:

They are almost all discovered. Except the overseas ones.

bcarly101 asks:

What should I do with my mp3 stock?

Creme_Delacramer:

Beats me.

nwcapitalist asks:

Is ENE for real?

Creme_Delacramer:

Enron is certainly for real.

hellios_4 asks:

Would you buy not rated corporate bonds over the www?

Creme_Delacramer:

Two part answer: I would buy anything over the web, except bonds, because I hate bonds!!

timbuck2too asks:

Cramer, I am convinced athome will surge upward, what do you think?

Creme_Delacramer:

I think you are delusional and hear voices.

miwalsh25 asks:

Do you like the cable top boxes like SFA?

Creme_Delacramer:

I am long MOT and love it.

ral1954 asks:

Short and long term on SONE, thanks.

Creme_Delacramer:

I don't want to be in that sector at all.

eepwlg asks:

Big Jim, Locked out of Janus Global tech for my Roth, what other Janus fund do you like in its place? Was VTSS for real today? Long VTSS.

Creme_Delacramer:

VTSS was a bona fide short squeeze. Have you looked at Life sciences from Janus, up 35% this year and my dad's new fave. As my dad got into Global Tech two years ago I am going with the man!

choosyg asks:

What are your favorite sectors and stocks for the short term?

Creme_Delacramer:

See above five names.

pkiper asks:

Jim, what are your Latin faves?

Creme_Delacramer:

Starmedia, Telebras, but I want them to pull back.

joedg asks:

Do you see NASDAQ Comp at 6000 and in what time frame?

Creme_Delacramer:

That's high but I think the Comp is going higher over the near-term.

nordmende asks:

Do you have any specific country with undiscovered tech stocks in mind?

Creme_Delacramer:

No, but I think the Israeli tech stocks keep working for me.

destok20 asks:

With all the positive news about ge why is it down?

Creme_Delacramer:

Cause it is a big financial company and the action in the bond market has been creating havoc for all of the financial companies. I am confident that it will do okay.

Also as I have been writing many times on our site, this is one of those stories that is being hurt by the out of S&P into NDX migration that is happening all over the world.

nenb asks:

Will epny ever get back to its previous highs?

Creme_Delacramer:

Yes, cause I sold it today.

stockpicker89 asks:

Happy Birthday Jim Cramer.

Creme_Delacramer:

You are a good man/woman, stockpicker 89, thanks!

nwcapitalist asks:

What's your take on SAFC?

Creme_Delacramer:

Okay, tell me this mr. northwest capitalist. What is a company that is doing so poorly sponsoring a brand new stadium for? I would dump these guys.

pkiper asks:

Jim, why is JNJ so hated?

Creme_Delacramer:

Actually don't single them out, the whole group is hated. election year and interest rate factors.

meshuga101 asks:

Any opinion on the photomask makers like PLAB?

Creme_Delacramer:

I would prefer, Meshuga, to be in the majors, like Novelus (I am long it) and AMAT. It will make you less crazy than those stocks.

timbuck2too asks:

Jim, what if I told you that you would be delusional if you did not see the Nasdaq as a bubble waiting to burst?

Creme_Delacramer:

My friend from Timbuckto, I would tell you that we have taken so much off the table that if it happened we would still do fine. That's why I keep saying Please please take profits. The bubble boy people have cost everybody a fortune, except for me.

tjschill asks:

Don't you see the rate hikes (5, soon 6), as insurance or "markers" (to use a casino term) that Greenspan will "owe" us back once the economy starts to slow -- just like last year when he gave us three back with the Asian and LTCG fiasco?

Creme_Delacramer:

I don't want to see that far. I never like to look through the rate hike process.

ChatYahoo_Lisa:

Thanks JJC....Have a great birthday!

Creme_Delacramer:

Thanks so much Lisa, I am so glad you still produce my stuff because you are the best, and thanks everybody for great great questions!!!