Tech's Changing for the Better Now

Money from other sectors is moving here, with valuations lower and the majors' bleeding stanched.

Author:: Jim Cramer
Publish date:: Feb 28, 2006 7:53 AM EST

This column was originally published on RealMoney on Feb. 27 at 3:24 p.m. EST. It's being republished as a bonus for TheStreet.com readers.

Nuttier things have happened, but when you take away the oil stocks and the golds and you decide that housing's no good, that frees up a goodly chunk of money. Guess where it is being redeployed.

That's right, technology.

Here's

EMC

(EMC)

finally moving off the $13 dime. How about

Cisco

(CSCO) - Get Report

beckoning to leave the teenagers?

Qualcomm

(QCOM) - Get Report

, at last, is acting like

Broadcom

(BRCM)

and

Marvell

(MRVL) - Get Report

. And get this: I believe next up are the semi capital equipment stocks.

I hesitate to say what could be behind all of this goodness. Certainly not the elusive Chinese telecom contracts that

The Wall Street Journal

writes up. (

Powerwave

(PWAV)

is the real winner there, I believe.) And not the consumer. He's dead, remember?

No, I believe it's because we have a group that hasn't moved in ages and that is no longer as expensive as it was. You can have EMC and Cisco go up 3 points and none of the value police will arrest anybody. Would anyone mind if

IBM

(IBM) - Get Report

went to a 14 multiple from a 13? Didn't think so.

I have to tell you that it is quite rare to see this group as

unexploited

as it is. But some of it is because a bellwether like

Microsoft

(MSFT) - Get Report

just caught a break from

Sony's

(SNE) - Get Report

mess-up with PlayStation and a bellwether like

Intel

(INTC) - Get Report

stopped going down after multiple estimate cuts. When the majors stop bleeding, the minors can start growing again.

I think tech's changing, right now, for the better. Hmm, next thing you know I will like

Sun Micro

(SUNW) - Get Report

and

Dell

(DELL) - Get Report

P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:

It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our

free trial offer

to TheStreet.com's

RealMoney

premium Web site, where you'll get in-depth commentary

and

money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice --

try it now.

At the time of publication, Cramer was long Qualcomm and Microsoft.

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

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.