At the same time, the stuff that is really down, well, I can't think how it turns around.
Take the semis. We had -- until last night with Nvidia (NVDA) -- three types of semis: the commodities, which are selling at ridiculously low multiples -- think Micron (MU) , Western Digital (WDC) (flash) -- the ones that were at ridiculously high multiples -- think Nvidia -- and then ones in no man's land -- think Intel (INTC) , Analog Devices (ADI) , Texas Instruments (TXN) , Skyworks (SWKS) .
As long as Nvidia was climbing, it gave you cover to by the no man's land. Now you have to wait to see how low Nvidia goes. (Take a look at this article by Bruce Kamich for a technical view on NVDA)
Was Nvidia bad? No, it had a product transition that made it incapable of blowing out the data center number. The problem is, the really, really, really, great companies are always having product transitions, and they usually have a smoother one.
That's the real worry. Not demand. Not demand at all. So, there will be a price that Nvidia can be bought. It's just that Nvidia is no longer perfect after being perfect.
All of tech, today at least, is in the grips of Nvidia. So let's see how that plays out.
You can't touch anything that's heavy auto, 'cause auto is weak.
You have to wait a day for retail, after Macy's M dropped the P-bomb by saying the fourth quarter would be promotional. Do you know, if it hadn't used that word, Macy's stock might have been flat yesterday?
You can't buy anything financial until interest rates stop going down, and as long as the Korean standoff is hot, the rates will stay down.
Consumer products companies are intriguing only if they come down more. Procter & Gamble (PG) , Estee Lauder (EL) , Action Alerts PLUS charity portfolio holding PepsiCo (PEP) , McDonald's (MCD) , Clorox (CLX) , are all a little too high for me to start buying.
Which pretty much leaves you industrials, health care, fintech and transports. All are compelling to me. They are the places we are searching for buys.
That's where the work must be done until Nvidia settles out.
It's incredible how one company can control so much sector mind share. That's what happens, though, when one company dominates the data center, the autonomous car, gaming, cryptocurrency, artificial intelligence and voice. Wow, that's' some line-up. No wonder it's ultimately the one to buy.
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Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long PEP.
Last night Live Nation Entertainment (LYV) , the company that produces live music festivals and owns Ticketmaster, put on one of the best clinics of the year, a triumphant presentation following the news of its truly astonishing second quarter report.
I've been studying and recommending this company since it traded at $22 a couple of years ago, after I met Michael Rapino, the CEO, at Dreamforce, the annual Salesforce.com (CRM) bash that showcases the future of pretty much, well, everything.
Rapino outlined a plan to be able to buy up festivals around the country while expanding Ticketmaster to handle those venues, as well as others that it currently didn't take care of.
I should have been more aware of it, given that John Malone, the incredibly prescient investor behind Liberty Media, had, four years before I considered the merits of the company, bought 34 million shares for $12 each in a tender offer back in 2010. Liberty now owns 69 million shares -- yes, they continued buying as the stock stayed low -- or 34%.
It's always made sense to follow what Malone and his doppelganger, Greg Maffei, the CEO of Liberty Media and chairman of Live Nation, do.
Now that plan to build that network of festivals is being put into action and it is generating staggering numbers, with operating revenues up 29%, operating income up 53% and free cash flow -- these events just spin off cash -- up 42%.
Rapino has created a platform of 7000 shows and a ticket business that that has sold more than 68 million tickets this year so far, 12 million more than last year.
It's the hottest venue for you know who: the millennials. "Our growth continues to be strongly driven by our strategic brand relationships, with over 50 sponsors that each spend more than one million with us each year across our onsite and online platforms to reach that highly sought-after millennial customer," Rapino explained.
Sponsorship revenue is up 32%, and because of the ease with which tickets are bought on his platform, especially its growing mobile presence -- 31% versus 27% last year -- he now has information on 550 million fans.
Lots of CEOs claim they have a flywheel effect, but Rapino really does have one going here. Because of the growing base of personalized tickets, like the ones on your cellphone for airline tickets, he can push information to you for concerts you might be interested in or paraphernalia you might naturally want.
In other words, Live Nation is taking advantage of all the customer relations products that Salesforce.com has to sell these millennials more goods and services at the point when they are most thinking about them. He's even come up with a verified ticket approach, enabling artists to prioritize the distribution of tickets of rabid fans using a proprietary algorithm for such behavior.
Now, why does all of this work so well? Rapino doesn't spent a lot of time on that, because it is so obvious, but nothing is better on your Instagram page than videos of you swaying and dancing to the music of a concert that is set up as the perfect Facebook background.
It's even better than going to sporting events -- which, by the way, are actually down in growth year over year.
The goal of all advertisers is to hit people when they are most interested. The best platform I have seen to date for these hard-to-reach folks may be Live Nation.
That's why, even at $40, it still may be a terrific play on the millennials and everything they crave, all bundled up into one amazing digital on and offline platform.Watch More with TheStreet:
Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- How Nvidia is no longer perfect
- How Live Nation may be the best play
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's--and reader comments--in real time.