Mad Money: Cramer Says Semiconductor Stocks Back In Reckoning
Jim told viewers of his Mad Money show that semiconductor stocks are back in reckoning after being trapped for a decade by the prevailing business cycles. He believes that analysts have failed to notice that both cyclical and secular growth trends are now turning in favor of the semis. After going through the conference calls of dozens of semiconductor stocks, he came to the conclusion that their impressive earnings were not simply the result of a recovery in the global economy. The long-term secular boom in digital gadgets, ranging from cell phones to e-book readers and from smart electric power to smarter cars, is also playing a key role in the semiconductor companies delivering blowout earnings.
Jim believes that investors could have foreseen the impressive earnings beat at toymaker Hasbro (NYSE: HAS) if they had taken the company’s recent 25% dividend hike seriously. Cramer had recommended the stock on July 19 and since then the stock has moved up 38%. HAS jumped 12.69% in yesterday’s trading.
While comparing HAS with Mattel (NYSE: MAT), Cramer said that although MAT is not in the league of HAS, it still is a good company. MAT lost 0.20% in yesterday’s trade.
On being asked by a viewer, Jim said that he continues to believe in Apple (NASDAQ: AAPL). However, considering Google’s (NASDAQ: GOOG) issues with the Chinese government, he lowered his target price for GOOG. AAPL gained 0.47% in pre-market trading, while GOOG fell 0.22%.
When asked about Atmel (NASDAQ: ATML), Cramer expressed his preference for rival Skyworks Solutions (NASDAQ: SWKS). While ATML’s shares declined 0.42% in after hours, SWKS’ gained 0.22% in yesterday’s trading.
Cramer continued to maintain his preference for Nucor (NYSE: NUE) in the steel industry. NUE fell 2.20% in yesterday’s trade.
