Cramer's Mad Money - 10 Reasons to Believe the Nasdaq Rally (6/8/09)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday June 8.

Tech Rally: Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Research in Motion (RIMM), (NASDAQ:BIDU), Cisco Systems (NASDAQ:CSCO), Adobe Systems (NASDAQ:ADBE), Express Scripts (NASDAQ:ESRX), Joy Global (JOYG), Qualcomm (NASDAQ:QCOM), Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC)

Cramer once again said he's sick and tired of bearish comments from the financial media and skeptics who won't accept the bull market. He noted the Nasdaq is up 17%, hardly a sign of a downturn, and gave 10 reasons to believe the tech rally is the real thing.

1, Apple is up 69% on the iPhone price cuts and new features.

2. Google, up 43% is steadily taking market share for advertising from print media.

3. Amazon is up 68% with higher gas prices and consumers more inclined to shop at home.

4.Research in Motion made an amazing 102% jump on new products and improved sales.

5.Cisco rose 22% when CEO John Chambers declared a bottom in the stock.

6. Adobe's winning products were enough of an indication that you can't keep a good stock down. Adobe is up 37% after having been hammered.

7. Express Scripts: The rest of the healthcare sector might be trembling with worry over Obama's proposed legislation, Express Scripts is up 22%.

8. Joy Global: Chinese demand this driving mining-equipment maker up 74%, in spite of slowing orders in the U.S.

9. Qualcomm has settled its legal battles and seen an upsurge in 3G and 4G sales, and the stock is up 22%.

10. Microsoft and Intel might have registered only modest gains, but they are, after all gains.

Tech Spec: ADC Telecom (ADCT)

ADC Telecom is a play on main themes moving the market lately; bandwith demand, wireless buildout and recovery in China. ADC makes high-speed connectivity equipment which is needed for internet, cable and wireless networks. While ADC was hurt by cuts in capital spending from clients Verizon and AT&T, these companies are now spending again, and ADC will be a prime beneficiary.

The company reports that sales have doubled in China, which is not surprising given the $40 billion the country earmarked for wireless buildout in its stimulus plan. ADC delivered an upside surprise in its last quarter and beat estimates by five cents per share compared to The Street's prediction of one penny. ADC has $512 million in cash, and has doubled from its low of $2 but is still half of its 52-week high price, and Cramer thinks this is an ideal level to buy.

Boston Properties (NYSE:BXP)

While The Street thought REITs were moribund, lately these trusts have been rising from the dead and some have been successful at raising capital. Of 20 REITs which have issued secondary offerings, 10 saw their offerings rise at least 10% - not bad for a sector that was considered finished. Cramer likes Boston Properties, which issued a secondary last Friday of 15 million shares at $50. The stock is only up 43 cents, and Cramer thinks it is headed higher as real estate bounces back. The REIT has class A properties and sold a significant amount of properties during the real estate bull market and bought a few when prices fell. This REIT returns a large percentage of profits to shareholders with its generous 5.4% dividend, and even a proposed cut would still mean a 4% yield.

Mad Mail: Brenda Barnes, Sara Lee (SLE)

A viewer nominated Sara Lee CEO Brenda Barnes for a place on Cramer's CEO Wall of Shame. The company's share price has falled 60% since she has been at the helm, the spinoff of its biggest business, branded apparel, was unwise and Barnes has been on the Board of Directors of other failing companies, including New York Times and PepsiAmericas. Cramer said he would mull over the possibility of adding Barnes to the CEO Wall of Shame.


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