Each episode of
"RealMoney" radio is filled with phone calls from "home-game" investors, and the first caller on Friday asked Jim Cramer if it was time to ring the register on
Cramer said that he's always concerned about investors holding stocks for too long, given the fact that so many people lost money in the tech bust because they never locked in profits.
Starbucks is up 54% over the past year, but he said that it's not yet greedy to keep holding on to the stock. It's growing faster than any other major retailer and expanding rapidly in China, one of the best themes to embrace, he said. Cramer said it could "catch a double," so he blessed ownership of Starbucks.
Advanced Micro Devices
, he said that the company has busted up the PC chip monopoly once owned by
When Intel in 1988 decided to shut down all of its production lines to focus on a chip that became the Pentium, it was the eighth-largest semiconductor company in the world and was unprofitable, he said.
But the company became No. 1 because it made the guts for the PC and had a virtual monopoly on the industry. But AMD figured out a way to make cheaper and more powerful chips, and Cramer believes the company could eventually have 30% of the PC chip market.
He said that the stock could go to $40 from $32, and that he would sell Intel and buy AMD. But as a caveat, he said that the stock will likely not do well this summer because
Vista will be late to market.
Big PC makers usually build inventory in the summer in anticipation of the holiday buying season, but the Vista timetable will interrupt this trend, he said. He owns Microsoft for his
ActionAlerts PLUS charitable trust portfolio.
He said that now is the time to buy
, which is down 8%.
The stock is up 200% on the year, so he said that it's no surprise investors are ringing the register and locking in gains.
The stock tracked higher in anticipation of a great quarter, and as Cramer predicted, it fell prey to profit-taking after it reported good results.
He said he would be an aggressive buyer, even though it may not be done going down. He recommended putting on one-quarter of one's position now, and then one of the remaining three quarters each time the stock falls a dime.
He told a caller that
"has the appearance of being cheap," but that it has been locked between $80 and $85 for a long time.
, it's making a product people don't want, he said. He would sell IBM and buy
, which he owns for
ActionAlerts PLUS. The company does storage, just like IBM does, but is faster and better, he said.
He said that there is money to be made in companies that supply titanium for planes, and that a caller should focus his attention on
RTI International Metals
Allegheny is a long-term, best-of-breed buy, he said. He added that the stock ran up ahead of great quarterly results and then fell to profit-taking, giving investors an opportunity to pick up the stock at a more affordable price.
Cramer said that
stock has done the same thing that Conexant and Allegheny have done. The company makes diesel engines and it has risen higher on the fact that all trucks will have to switch to clean air engines in 2007.
The stock jumped after a great earnings announcement, and then fell, Cramer said. Pick up the stock on Monday, he added.
Finally, he told a caller that
has run too high, and that the company's last two quarters were not spectacular.
He said he would need to see a great quarter from the company before he would bless buying the stock again. For a fast-growth company, he suggested taking a look at Network Appliance.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
At the time of publication, Cramer was long Microsoft and Network Appliance.
James J. 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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