Cramer's 'Mad Money' Recap: Amazon, Google, Apple Are the Only Tech Stocks That Matter

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NEW YORK ( TheStreet) -- When it comes to technology, don't over-think things, Jim Cramer told "Mad Money" viewers Thursday.

There are only three tech stocks that matter in this market, and they are Amazon.com ( AMZN), Google ( GOOG) and Apple ( AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS .

Cramer said each of these companies are doing amazing things that can make investors money while the rest of tech seems to be in decline. Personal computers are becoming increasingly irrelevant, said Cramer, which makes the stocks of Hewlett-Packard ( HPQ) and Dell ( DELL) a sell, sell, sell, along with everything that goes into PCs, mainly Intel ( INTC) and Microsoft ( MSFT).

While no one may want a PC this holiday season, everyone certainly wants a tablet, said Cramer, which may lead some investors to Barnes & Noble ( BKS). But after the company delivered an earnings miss of 4 cents a share, Cramer said he'll take a pass. Barnes & Noble's Nook tablet simply isn't a big enough factor to matter.

But when it comes to Amazon, Google and Apple, those companies offer customers superior products at a great value. Cramer said everything Amazon sells is done at a terrific price and the company's model of making money selling all the books, movies and music that goes onto your Kindle is a good one.

Cramer was less excited about Google, however, after that company disappointed last quarter. Google always innovates, he said, which is why he needs to see the company's results from this quarter before deciding to buy back in.

Then there's Apple, the clear leader in phones and tablets. Cramer said Apple's iPad has only one real competitor and that's the iPad Mini. That's why when it comes to this holiday season, Cramer told viewers not to over-think it, just go with the winners.

Fix the Infrastructure

If Hurricane Sandy has taught our nation anything, it's that we need to invest in our electrical infrastructure and we need to do it now.

Even before the hurricane, Cramer noted a full 30% of our nation's infrastructure is beyond its useful life, with another 30% approaching the end of its useful life.

What does that mean for investors? Cramer said it means Quanta Services ( PWR), the leader in building, maintaining and repairing electrical infrastructure.

In addition to its electrical business, Quanta also helps build and maintain oil and natural gas pipelines and is a key provider to companies like Enbridge ( ENB) and Kinder Morgan Energy Partners ( KMP), all of which need more pipelines as they expand into our nation's oil shale.

Quanta also has a big business in Canada, noted Cramer, a country that plans to spend over $100 billion over the next 20 years to rebuild its aging infrastructures.

Cramer noted that shares of Quanta are trading just off their 52-week highs but are still a full $10 a share short of where they were before the great recession.

He said the company trades at 15.8 times earnings with a 17.7% growth rate, despite having delivers three beat-and-raise quarters, including its most recent 11-cent-a-share earnings beat on a 34% rise in revenue. Quanta currently has a $4 billion backlog of business.

How to Play Real Estate

The U.S. housing market is back, Cramer told viewers, but is the way to play the move with real estate Web sites including Zillow ( Z), Trulia ( TRLA) or Realogy ( RLGY)? Cramer said that all three of these companies were hot IPOs that popped on their first day of trading, but only one is currently worth investing in.

Both Zillow and Trulia are real estate Web sites, said Cramer, ones that rely on online advertising for their revenues. Realogy, however, is an old-line real estate broker, running under the Coldwell Banker name among others. This means while just about anyone can come in and compete with Zillow or Trulia, Realogy stands alone as a solid, proven company.

Cramer said the fear with both Zillow and Trulia are that their growth is unsustainable. With shares trading at 48 times earnings and 103 times earnings respectively, both companies cannot afford to have that happen.

As the housing recovery continues, Realogy will make money two ways, both from higher home values -- think commissions -- and by taking a larger percentage of the real estate pie. The company already has its hands in nearly a quarter of all residential real estate transactions in our country.

Realogy trades at 29 times earnings and is just off its highs. Cramer said he would buy only into weakness as the markets decline.

Lightning Round

In the Lightning Round, Cramer was bullish on MarkWest Energy Partners ( MWE), Bank of America ( BAC), Wells Fargo ( WFC), Heckmann ( HEK), LSI Corp ( LSI) and Duke Energy ( DUK).

Cramer was bearish on Exelon ( EXC), Nokia ( NOK), DuPont ( DD) and Pitney Bowes ( PBI).

Executive Decision

In the "Executive Decision" segment, Cramer sat down with Scott Peters, chairman, president and CEO of Healthcare Trust ( HTA), a rest estate investment trust that focuses exclusively on medical office buildings near hospital campuses. Shares of Healthcare Trust have a 5.4% yield.

Peters said the Affordable Care Act means that millions more Americans will have health coverage and will be seeking medical care. With a limited supply of medical real estate, that means great things for his company.

He said the Affordable Care Act also forces health providers to become more cost-efficient, and tying up capital in real estate just doesn't make sense when that money would be better spent investing in more doctors or infrastructure.

When asked why competitors couldn't just build more buildings, Peters explained that it's all about location, and providers want to be as close to the hospital as they can -- which is exactly where his company's buildings are located.

Cramer said that investors looking for a stock not affected by the fiscal cliff need to consider Healthcare Trust.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer pondered whether our nation is underestimating the impact of Hurricane Sandy. He said many people are still not able to grasp the enormity of Sandy's impact, and that in many areas shortages of materials and contractors may mean it will take months before the bulk of the rebuilding occurs.

Cramer said that all of the usual suspects, including USG ( USG), Weyerhaeuser ( WY), Owens-Corning ( OC) and Caterpillar ( CAT) will be the beneficiaries of rebuilding that could be big enough to move our nation's GDP next year.

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-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, CAT, DD, WFC and WY.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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