This post by Jim Cramer appeared earlier Friday on RealMoney. Click here for a free trial, and enjoy incisive commentary all day, every day.
The other day I was reading
. I am on a mission to convince people that this Intel is not the Intel of old, that it is a cash flow machine, that it is moving aggressively into servers to play cloud, that it is a dominant player with two new product cycles that already have low gross margins. Om Malik
with me and recognizes the power of this Intel and is adamant that the company -- along with
(something I picked up when I met with him for breakfast) -- is going in the right direction and was maligned by the market after a great quarter that was marred by
. I ponder this today because suddenly people like
again, meaning that they could circle back and look at Intel, which is cheaper and has more going for it long term.
Intel is in a quandary. If management had simply said a couple of quarters ago that the company is not going to focus on gross margins but on longer-term strategies, I believe it would be higher now, as the Street (particularly the negativists at JP Morgan) would be adjusting to the notion of the company as a product-cycle play levered to cloud. But, similar to Microsoft, Intel has been pigeon-holed to the "not
, so sell" quadrant.
If Microsoft stays higher, then I believe that the circle back will be alive and well, as it should be--talking ActionAlert.com book. If you are mystified by my reasoning, by all means
, and you will see the rationale explained much better than I can do in this entry.
Random musings: Ford
is a winner. The credit gets better and better. I still love the preferred. The common is not coming until 2011, from what I can read in the statement, with the help of my chief accountant and colleague Matt Horween.
At the time of publication, Cramer was long INTC, AAPL and JPM
At the time of publication, Cramer was long INTC, AAPL and JPM.
Jim Cramer, co-founder and chairman of TheStreet.com, writes daily market commentary for TheStreet.com's RealMoney and runs the charitable trust portfolio,
. He also participates in video segments on TheStreet.com TV and serves as host of CNBC's "Mad Money" television program.
Mr. Cramer graduated magna cum laude from Harvard College, where he was president of The Harvard Crimson. He worked as a journalist at the Tallahassee Democrat and the Los Angeles Herald Examiner, covering everything from sports to homicide before moving to New York to help start American Lawyer magazine. After a three-year stint, Mr. Cramer entered Harvard Law School and received his J.D. in 1984. Instead of practicing law, however, he joined Goldman Sachs, where he worked in sales and trading. In 1987, he left Goldman to start his own hedge fund. While he worked at his fund, Mr. Cramer helped start Smart Money for Dow Jones and then, in 1996, he co-founded TheStreet.com, of which he is chairman and where he has served as a columnist and contributor since. In 2000, Mr. Cramer retired from active money management to embrace media full time, including radio and television.
Mr. Cramer is the author of "
," "You Got Screwed," "Jim Cramer's Real Money," "Jim Cramer's Mad Money," "Jim Cramer's Stay Mad for Life" and, most recently, "Jim Cramer's Getting Back to Even." He has written for Time magazine and New York magazine and has been featured on CBS' 60 Minutes, NBC's Nightly News with Brian Williams, Meet the Press, Today, The Tonight Show, Late Night and MSNBC's Morning Joe.