Cramer Likes Flextronics (FLEX) In Electronics Industry

Electronics industry has caught the attention of CNBC’s Mad Money Jim Cramer. He explains that tech companies outsource their production to electronic manufacturing service companies. These EMS companies have high fixed costs and low margins which makes them unattractive when economy is slowing down. They become hot stocks when economic recovery starts and demand improves.

Cramer thinks that people are starting to buy electronic devices, and the times are improving for EMS companies. But he doesn’t like all of them and he asked Dan Fitzpatrick to help him choose the right stocks in this sector. Flextronics (NASDAQ: FLEX) is best in their opinion, and Cramer’s analysis show that technical tools along with fundamentals back this call.