NEW YORK ( TheStreet) -- "It's time to change our perceptions of Apple ( AAPL)," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said that Apple, a stock which he owns for his charitable trust,
Late Chip Rally?In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Semiconductor HOLDERS ( SMH) ETF to see if now's the time to buy into a late summer rally. According to Collins, the weekly chart of the semiconductor ETF shows the fund barely holding onto its long-term support levels, and despite the relative strength index and stochastics showing slight signs of life, he's not impressed. Turning to the daily chart, Collins was equally unimpressed, with the chart showing the dreaded "head-and-shoulders" pattern, and several levels of resistance that need to be conquered before the stock can head meaningfully higher. Cramer, however, said he feels different about the dreaded semiconductor stocks. He said historically September has been a good month for the semis, and with seasonality on our side, along with strong trends continuing in cloud computing, video over the Internet and the mobile Internet tsunami, he sees more semiconductor companies going forward. He said the estimates for these stocks are simply too low, and the companies will have a hard time not beating them.
Macro TrendsIn an "Executive Decision" segment, Cramer sat down with Dave Cote, chairman and CEO of Honeywell ( HON), another Action Alerts PLUS stock, and the next recommendation in Cramer's "Made Here" series of the best American manufacturers. Cote said that Honeywell focuses on macro trends that will be around for a long time. These trends include energy generation and efficiency and safety, whether it be aircraft safety, home safety or personal safety, among a host of others. In the aerospace sector, for example, Cote explained that Honeywell is transforming aircraft from an analog to a fully digital cockpit, saving nine cubic feet of space and 450 pounds of weight, all while giving pilots far more data than they've ever had before. In the automotive sector, Cote said Honeywell is focused on turbochargers, devices that are an offshoot of jet engines, and help cars produce more power while using less fuel. Turning to the economy, Cote said the U.S. will lag the rest of the world unless it gets its deficit under control, focus on math and science education, and develop a smart energy policy, one that includes both power generation and efficiency. Cote said he's not betting on a double-dip recession. He said he can't help but be nervous about the future, but noted that overall, orders are "not that bad." Cramer continued his recommendation of Honeywell as one of America's greatest manufacturing companies.