Does it have smartphone exposure, or doesn't it? That is the question. When I look at what's moving in tech and what's become sullen and gloomy, there's only one compass: smartphones. Think about what's moved this week: Cree (NASDAQ: CREE) (Cramer's Take), Tellabs (NASDAQ: TLAB) (Cramer's Take) and ADC Telecom (NASDAQ: ADCT) (Cramer's Take). These are terrific plays in the smartphone food chain and are included in the "Mad Money" Mobile Internet Index.
ADC Telecom is Chinese Internet infrastructure, and we know that China's spending $40 billion to build out infrastructure that can allow aggressive adoption of smartphones. Tellabs has been waiting for next-generation telecom orders -- smartphones. I think the fact that it announced a giant buyback -- it matters when the stock is this small -- is the signal needed to suggest they are getting orders.
Cree's the lighting play off of the smartphones. That stock's been on fire for ages, but this recent number and the propulsion after reminds us of how big this category can be.
Remember, Apple (NASDAQ: AAPL) (Cramer's Take) cannot meet demand for AT&T (NYSE: T) (Cramer's Take) for smartphones, and the China Unicom (NYSE: CHU) (Cramer's Take) order hasn't even hit yet! Kaufman Brothers says Verizon's (NYSE: VZ) (Cramer's Take) BlackBerry sales are incredibly strong, and the competition from sell-rated (by me!) Palm (NASDAQ: PALM) (Cramer's Take) has receded. Morgan Joseph agrees this morning in its downgrade to "sell" with a $7.50 price target. Looking like a one-hit wonder there because of returns and because of a lack of applications -- Apple's strong point. Obviously Apple remains the easiest call in the group, with Qualcomm (NASDAQ: QCOM) (Cramer's Take) not far behind. Both have been stalled; both, I believe, are ready to break out.
If you are looking to parse wheat from chaff, ask yourself, "Does it have smartphone exposure?" If yes, buy on weakness. Heck, buy on strength!
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long China Unicom and Qualcomm.
Reader Comments (Page 1 of 1)
8-15-2009 @ 9:34PM
SETH said...
There is the boob w/ reference to a stupid loser dating site. Why does AOL let this fool post? Why no NEWS ON AOL? I guess the loser of stupid as a 2nd grader, son of Gov. Stanford was busy.(SC)(R)-natch?