There's a lesson to be learned from the late 1970s, Jim Cramer told his "RealMoney" radio show listeners, and that's the lesson of the computer cycle.

In 1979, a program was developed to enable data to be put into a spreadsheet, and businesses saw that buying a computer with the spreadsheet program would make life much more efficient, Cramer said. As computers developed and innovations were introduced, they soon hit the consumer market and everyone needed a PC.

But that market cycle has run its course, he said. Now, we're in the early stages of an entertainment-driven technology cycle.

Best Buy ( BBY), long a popular "best-of-breed" big-box retailer, attributed its fourth-quarter double-digit profit growth to audio-visual equipment sales, including big-screen televisions and MP3 players.

People want to be entertained and that is where the growth will be, Cramer said. New products drive a cycle, and while there's nothing new on the PC horizon, there's a lot new in entertainment, he said.

New games coming out for Microsoft's ( MSFT) Xbox 360 feature some of the most convincing graphics Cramer has ever seen, and he believes there will be more demand for lifelike games.

He doesn't care about the software, focusing instead on the hardware inside that makes the games exciting. In this space, he likes Nvidia ( NVDA) and ATI Technologies ( ATYT).

These stocks have been hot, so he would only buy them after they came down a bit. And he wouldn't put his whole position on at once, he added, since there's a big multiyear cycle ahead of us.

He also likes cell phones because they continue to roll out with products and features that cater to consumers who want entertainment, including the ability to send short videos and better ring tones.

Nokia ( NOK) and Motorola ( MOT) are cheap stocks that Cramer likes. He also mentioned Skyworks Solutions ( SWKS) because it makes chips in these cell phones, as well as Qualcomm ( QCOM), which he owns for his ActionAlerts PLUS charitable trust portfolio.

Odds and Ends

Cramer said he would avoid Multi-Fineline Electronix ( MFLX) because it's too levered to the fate of Motorola.

A listener wanted advice on how to start picking stocks on his own so that he can narrow the field without depending on Cramer.

Cramer told him to begin by "buying what you know" because that will provide an inside edge.

Look at the potholes on the roads, he said. They all need filling and we have a bull market in the materials needed for paving, he said. In that space, he likes Vulcan Materials ( VMC), Martin Marietta Materials ( MLM) and Rinker Group ( RIN).

Cramer said that during a trip to the mall, he noticed that Limited ( LTD) stores were looking better than he has seen them in a while, and that he liked the fresh look at TJX's ( TJX) TJ Maxx stores. He would look into these stocks.

And he said that he bought Commerce Bancorp ( CBH) for ActionAlerts PLUS because he did his banking there and liked the service he got.

He told a caller that he believes Sony ( SNE) is an "undermanaged company." It's getting beaten out by Microsoft's Xbox 360 and by Apple's ( AAPL) iPod.

He said the stock isn't really that strong, but that the hot Japanese market has lifted all boats, including Sony.

The real investment opportunities are in Mexico, with the Mexican companies outperforming their American equivalents. That's why Cramer likes Coca-Cola Femsa ( KOF), the Mexican bottling company that he says is beating out Coca-Cola ( KO).

He likes America Movil ( AMX) for a wireless play, Cemex ( CX) for a building company and Homex ( HXM) as a play on middle-class home buyers in Mexico.

Corning Calling

Corning ( GLW) makes the screens for big-screen TVs, and Cramer said this market is growing in leaps and bounds. (Corning was this week's "Cramer on Demand," the winning stock as voted on by TheStreet.com readers. You can vote on a stock for Cramer to discuss next week in our poll at the end of this story.)

The stock is up 151% year to date, and if he had owned the stock since last year he said he would be taking some off the table. But if it pulls back to $15, he said he would be a buyer.

He told a caller that he still likes Sotheby's ( BID) because collectables are in, and Sotheby's is the way to play this trend.

The stock has been in the doldrums since 2000, and is now back to where it was seven years ago, he said. Cramer believes that Sotheby's will get a bump higher after the big spring art auctions that are coming up.

He said he would be a buyer ahead of these auctions.

Gold and silver are "hot and will stay hot," even after taking out 25-year highs, Cramer said. He added industries are finding uses for silver, and we're running out of gold.

In this space, he likes Goldcorp ( GG) and Crystallex International ( KRY).

Finally, he told a caller that he likes Cisco ( CSCO), which is up 27% year to date, because it is levered to VoIP, networking, "computers talking to each other," and sending data, voice and video to consumers.

But compared to where it was in 2000, he said, the stock "has been a dog."

He thinks Cisco is a decent pick, but he also recommends a basket of contract suppliers that work with Cisco and its competitor Tellabs ( TLAB).

These stocks are Finisar ( FNSR), JDS Uniphase ( JDSU), MRV Communications ( MRVC), Broadcom ( BRCM), Conexant ( CNXT), Avanex ( AVNX), Ciena ( CIEN) and Mindspeed Technologies ( MSPD).


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

Here's your chance to pick the stock you'd like me to feature on my radio show April 6:
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REMEMBER to listen in on Thursday for my take on the stock that wins this poll!

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

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.

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