NEW YORK ( TheStreet) -- "Sometimes we don't know what's going on in the markets," Jim Cramer told the viewers of his "Mad Money"TV show Tuesday. "When that happens," he said, "it's time to stop, look, listen and learn." Cramer was doing just that in his live broadcast from the CTIA Wireless conference in Orlando, Fla. to learn about all the latest in the mobile Internet tsunami. Why focus on tech amidst reports of inventory gluts in tablets, PCs and optical equipment? Cramer said its because in the end, the long-term positives in tech will prevail over the short-term inventory problems. He said mobile technology is changing our lives, and is even helping bring down global dictators, and that's a trend that cannot be stopped for long. But in the interim, Cramer said investors need to be patient, and scale out of stocks that have become over extended, like tech, and move into stocks whose prices have been depressed artificially. He said the banks are interesting plays, although they need job growth to truly do well. Cramer said that it's too late to sell stocks like Nike ( NKE), which got pummeled after it's most recent results. Cramer said he'd be a buyer of Lululemon ( LULU), but would be a seller of Chevron ( CVX) and Marathon Oil ( MRO), which are near their 52-week highs. He remained bullish on the domestic oil and gas producers however, companies like EOG Resources ( EOG), Continental Resources ( CLR) and Chesapeake Energy ( CHK) "There's nothing big happening right now," said Cramer, which makes it the perfect time to make these changes.
AT&T Deal LowdownIn the "Executive Decision" segment, Cramer sat down with Ralph De La Vega, president and CEO of AT&T Mobility, the wireless arm of AT&T ( T), on the heels of the company's $39 billion acquisition of T-Mobile USA, the nation's fourth largest wireless carrier. De La Vega called the T-Mobile deal a "match made in heaven," citing the two companies' compatible networks and wireless spectrum. He said the synergies that will be achieved exceed that of the purchase price and the merger will relieve some of the bandwidth pressures AT&T has been feeling in major metro areas. De La Vega said the deal brings benefits to both customers and shareholders. When asked about anti-trust concerns, De La Vega noted that the government usually looks at competition on a local level, and in 18 of the top 20 markets in the U.S., there are currently five or more wireless carriers. Additionally, companies like Sprint ( S) currently have three times the amount of spectrum per subscriber than AT&T currently has, meaning that Sprint could grow substantially. When asked about fears of higher prices for customers, De La Vega said that over the past 10 years, prices for cellular services have actually fallen. When customers complain that their bills are going, they're actually seeing the fact that people are using more and more different kinds of services, like mobile broadband, text messaging, etc. De La Vega said that AT&T is also still committed to investing in its infrastructure, and still has plans to bring high-speed LTE service to 95% of the U.S. population, bringing it with it thousands of new jobs and an extension of our nation's critical infrastructure. Cramer said he remains a supporter of both AT&T and rival Verizon ( VZ).
Monopoly ConcernsIn a second exclusive "Executive Decision" segment, Cramer also sat down with Dan Hesse, CEO of Sprint Nextel ( S), to see what's in store for Sprint, and how it plans to compete against AT&T and Verizon. Hesse said he was shocked to learn about the AT&T T-Mobile deal, as he didn't think it was possible for the No. 2 player to buy the No. 4 player. "It wasn't even on our radar," he admitted. Hesse said the issue is that it concentrates a large number of customers with just two companies. He said that in 2005, the "big two," AT&T and Verizon controlled 52% of all subscribers. That number stands at 67% today, and will jump to 79% if the deal is approved. Another issue that concerns Hesse is the possibility of exclusive, or favorable deals, with equipment makers given AT&T and Verizon's size. He said obtaining hardware has not been an issue thus far, but could become an issue in the future. Hesse joked that if there is a silver lining in the AT&T T-Mobile deal, it's that given T-Mobile's valuation, Sprint, with considerably more spectrum and better assets, should be worth a whole lot more this week than it was last week. Turning the focus back to Sprint, Hesse said his company remains focused on simplicity and giving customers a predictable bill with unlimited voice, text and data services. He said this strategy has led to a lot of recent successes for Sprint, but the company is keeping a close eye on rising usage patterns and is looking for ways to hold onto unlimited services for as long as possible.