Cramer's Mad Money - What to Buy if You Missed Intel (7/15/09)
July 16, 2009 | about: AAPL / CIT / CSCO / EMC / HPQ / INTC / NVLS / QCOM / SNDK
Novellus (NVLS), Sandisk (SNDK)
Intel's earnings beat and comments from Novellus' conference call make Sandisk, an unloved stock, a buy. Novellus discussed the significant price increases (as much as 75%) on NAND flash memory. Since Sandisk is the largest producer of NAND and flash chips, rising prices coupled with increasing demand will bring up Sandisk's stock price even if the company isn't best-of-breed; low expectations give the stock more room to rise. While Cramer admits the CEO was on his Wall of Shame after Sandisk rejected a profitable takeover offer last year, he believes the company will redeem itself.
Intel (INTC), Apple (AAPL), Qualcomm (QCOM), EMC (EMC), Hewlett Packard (HPQ), Cisco (CSCO)
Cramer gives Intel most of the credit for single-handedly bringing up the Nasdaq and sending the bears running. While signs of an upside for the company abounded with bullish comments from Intel as early as May and a comeback for the semiconductor group, few saw this earnings beat coming. The company reported robust sales and earnings, and on Intel's success, Cramer would keep buying the stock itself, which has more upside potential. He would also buy Apple, which is seeing strong notebook and iPhone sales, as well as Qualcomm, EMC, Hewlett Packard and Cisco.
CEO Wall of Shame: Jeffrey Peek, CIT Group (CIT)
Jeffrey Peek has been given ample opportunity to turn CIT Group around, and his every attempt has landed his company into more hot water. This lender to small and medium-sized businesses has lost 96% of its value, and schemes to raise capital have left investors with empty pockets. While CIT Group hardly deserves government assistance, Cramer thinks the company will receive federal aid to prevent all-but-inevitable bankruptcy. |
