CNBCs "Mad Money" TV show had Jim Cramer telling his viewers to change their skeptical stance on money-making trends of the market. In the show, he pointed to the stark differences between the tech rally happening today and the one that happened a year ago. He said that today's tech rally is all about speculating in the right manner, rather than in the mindless manner done by investors during the dot-com tech bubble of 2000.
Cramer believes that the three themes driving tech stocks are:
According to Cramer, the existing tech companies generating impressive earnings and those with growth prospects are exhibiting better value as new tech stocks are not making an entry into the market every day. With these factors in place, Jim specifies that the current tech rally is more than justified.
In Thursday’s "Sell Block" segment, Jim commented that you can never get a true picture from the headlines. Quoting the example of liquor purveyor Brown-Forman (NYSE: BF), Cramer said that while the headlines focused on the company’s 10-cents-a-share earnings beat, they failed to point out that the beat was the result of inventory shifts and currency translation. Cramer said that BF is a sell, since its flagship Jack Daniel's brand is seeing price declines.
When asked, Cramer informed a viewer it is not unusual for a firm’s research arm to recommend a stock and the asset management arm to sell the same, as these arms are completely separate in big brokerages like Goldman Sachs (NYSE: GS).
Cramer told the sellers of ON Semiconductor (NASDAQ: ONNN) that they are wrong in their decision, as that stock is poised to move higher.