NEW YORK ( TheStreet) --"The lessons of the 2000s need to be unlearned," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said that technology is back, fueled by new product cycles, and is no longer just a minor part of our economy. Cramer told viewers not to get lost in the fog of earnings season over the next few weeks, but instead, focus on something bigger and far more important, the return of tech. After almost of decade of doing nothing, tech is finally getting the respect and adoration it deserves, he said. What's driving this renaissance of technology? New product cycles. Cramer said all throughout the 1980s and 1990s, technology stocks roared higher on the heels of new product cycles for first, the PC, then second, the Internet. But after the dot com bust in 2001, Cramer noted, many of those new products dried up, withering even further over the past two years during the financial collapse. But that's no longer the case, said Cramer, as tablets, along with the infrastructure to support them, couple with social networking, social gaming, video on the web, cloud computing and the rest of the mobile Internet tsunami. "It's not just Apple ( AAPL)," a stock which he owns for his charitable trust,
Moving OnIn the "Executive Decision" segment, Cramer spoke with Rick Van Nieuwenhuyse, president and CEO of NovaGold Resources ( NG), another stock in Cramer's Action Alerts PLUS portfolio. Van Nieuwenhuyse said that many of his company's prior problems are all now ancient history, and NovaGold now has a blue chip shareholder base with solid prospects for the future. He said the company has doubled its reserves since rival Barrick Gold ( ABX) made a failed bid for the company. NovaGold is also working on bigger, more advanced projects than it was back then. Turning to NovaGold's huge Donlin Creek mine, Van Nieuwenhuyse said that the project is still in its testing phase, but will likely begin construction in the second half of 2011. When asked about the company's geo-political risk, Van Nieuwenhuyse commented that by operating in Canada and Alaska, NovaGold has the lowest political risk out there. He said that mining is an integral part of both regions' economies. "They're great locations," he said. NovaGold is also more than gold. Van Nieuwenhuyse noted that the company controls the largest copper deposit in North America. China, he said, is a huge buyer of copper, as well as other metals, and is driving much of the growth of copper. Cramer called NovaGold the most exciting company in his Action Alerts PLUS portfolio. He urged every investor to have at least some exposure to the precious metal.
Detective Work"One of the most important parts of investing it finding the truth," Jim Cramer said as he showed investors how to put on their Sherlock Holmes cap and find the best stocks. Cramer said he's always been a fundamentalist, believing that the best way to analyze a stock is by looking at the underlying company and its prospects. The "homework" that Cramer preaches nightly refers to looking at companies' earnings releases, checking EC filings and most importantly, listening to the quarterly conference calls. Cramer said this work may seem boring, but it's vital to understanding the stocks you own. But fundamentals don't always tell the whole story, said Cramer. Looking at the charts, or technical analysis, is a good gauge to tell what the big money guys are doing with their shares, he said, adding it's becoming increasingly important as more investors come to rely on patterns they see in the charts. Cramer said investors need a complete picture of a stock based on the best information out there. He said that in the long run, the fundamentals, such as the growth and strength of the underlying company, will always win out. But in the short term, he said, the buying and selling of institutional money managers matters more, and that's where technical analysis does its best work. Cramer cautioned, however, that investors should never buy a stock based solely on technical analysis. He said if the stock fails to go up as expected, investors will have absolutely no reason to own it. But if they like the fundamentals as well, then they won't mind holding on for the stock to recover.