'RealMoney' Radio Recap: Tech Check
The fourth-quarter tech rally is ready to roll, James Cramer said Friday on his
"RealMoney" radio show.
Microsoft
(MSFT) - Get Report
is seeing huge demand for its Xbox 360, having already sold out of its planned Nov. 22 launch, said Cramer.
Micron
(MU) - Get Report
raised estimates Thursday night. Foundries such as
Taiwan Semiconductor
(TSM) - Get Report
are seeing "big upticks" in orders, said Cramer.
National Semiconductor
(NSM)
boosted its dividend and
Texas Instruments
(TXN) - Get Report
,
Broadcom
and
Qualcomm
(QCOM) - Get Report
"can't meet demand," Cramer said. Ditto for
Motorola
(MOT)
on many of its cell phones, according to Cramer.
Cramer pointed out
Apple Computer
(AAPL) - Get Report
was downgraded at $50 earlier this week, but the stock was fetching $53.17 Friday afternoon.
Not every area of tech is rallying, though, said Cramer. There are problems in disk drives, since Apple decided to use flash memory in its iPods instead of small disk drives, he said. But flash makers such as
SanDisk
(SNDK)
are doing great, according to Cramer.
Cramer said
Cisco's
(CSCO) - Get Report
problems seem to be Cisco-specific.
Intel
(INTC) - Get Report
, although it has been a laggard, trades at just 16 times earnings, so Cramer refuses to give up on it.
"The most important factor out there in favor of technology is the skepticism." said Cramer. "That skepticism is misplaced."
Don't miss out on the fourth-quarter tech rally just because there are pockets that aren't doing as well, Cramer advised. The fourth quarter starts next week. "I need you to have at least one tech in your stock portfolio," he said.
RealMoney.com contributor and Stocks Under $10 co-author David Peltier joined Cramer to discuss low-priced stocks. Peltier had these things to say about the stocks mentioned.
Metretek Technologies
(MEK)
: The company warned last night, and there is "downside risk should natural gas prices retreat." At least wait for a pullback before buying.
ARM Holdings
(ARMHY)
: Expensive, but very profitable. Still, Peltier would prefer
MEMC Electronic Materials
(WFR)
.
T-3 Energy Services
(TTES)
: Peltier would "ring the register."
Gencor Industries
(GNCI)
: Peltier said this is a stock he would avoid. The company is being hurt by input costs and isn't able to pass on those costs to customers.
TVI
(TVIN)
: "Looks very legit," said Peltier. The company had a "hiccup" in the second quarter, but has since received orders which seem to demonstrate the company is back on track. Peltier could see the stock going to $5 or $6 in the "next couple months" from a recent $4, and could eventually grow into being a takeover candidate.
Cramer wrapped up the segment cautioning "most stocks under $10 are there for a reason." The reason, he said, is they're not doing well. "Be very, very careful with stocks under $10," he said.
Speaking on oil and gas stocks, Cramer said he would be a buyer Tuesday after the stocks have had a chance to "cool off" from end-of-quarter markups.
In response to a question on
Genentech
(DNA)
, Cramer said he would "be a buyer right here."
Cramer liked
FPL Group
(FPL) - Get Report
as a regulated utility play.
Finally, Cramer said he believes
Lucent
(LU)
is "breaking out here."
Lightning Round
Cramer was bullish on
Duke Energy
(DUK) - Get Report
,
XTO Energy
(XTO)
,
Onyx Pharmaceuticals
(ONXX)
,
JDSU
(JDSU)
,
Tekelec
(TKLC)
,
Capstone Turbine
(CPST) - Get Report
,
L-3 Communication
(LLL) - Get Report
,
UnitedHealth Group
(UNH) - Get Report
,
Peabody Energy
(BTU) - Get Report
,
Fording Canadian Coal Trust
(FDG)
and
Alliance Resource Partners
(ARLP) - Get Report
.
Cramer was bearish on
InterOil
(IOC)
.
At the time of publication, Cramer was long Fording Canadian Coal Trust, Intel, Lucent, Motorola, Microsoft, Qualcomm and UnitedHealth Group.
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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