Cramer’s Smartphone Stock Plays
“A new product cycle has begun in tech, and it cannot be denied,” Jim Cramer said on Wednesday’s “Mad Money” TV show. He said there’s a revolution as big as the Internet itself that investors should get in on it. Cramer said the move towards the wireless Internet via smartphones and high-tech gadgets has gone from luxuries to necessities. Cramer called this the first true secular growth trend in ages, and Wall Street has yet to recognize its significance. “These devices now carry our entire lives, like contacts, cameras, email, Internet, media, GPS, entertainment and much more,” he said. Cramer thinks the shift towards mobile Internet will raise the stock prices of all the players in the space, starting with leaders such as Apple (AAPL), Research In Motion (RIMM) and Palm (PALM). “This kind of sea change doesn’t have a saturation level, so the people who dismiss the trend are wrong,” Cramer said. As the product cycle kicks in, it will carry with it all the companies that make parts for the iPhone or BlackBerry or Pre, firms such as Starent Networks (STAR), Skyworks Solutions (SWKS), Texas Instruments (TXN), RF Micro Devices (RFMD), Sandisk (SNDK) and others. The phone companies like AT&T (T), Sprint Nextel (S) and Verizon (VZ) are also getting into the action by building out their wireless networks to meet consumer demand for these handsets. Cramer’s favorite component maker is Qualcomm (QCOM), a stock he holds in his charitable trust, and he favors Amazon.com (AMZN) for its Kindle e-book reader. Cramer said the big three to play on this trend are Apple (AAPL), Research In Motion (RIMM) and Palm (PALM), and he told viewers to ease into these names a bit at a time. When their stocks drop, buy more he said. Specifically for RIMM, Cramer said he would rebuild a position under $75 a share. “You cannot miss this move,” said Cramer. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!
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