Cramer's Mad Money - Dell and Nokia Are Just Whining (7/16/09)

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Includes: AAPL, DELL, INTC, JPM, NOK, WFC, XLNX
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday July 16

Sell Block: Dell (NASDAQ:DELL), Nokia (NYSE:NOK) with Intel (NASDAQ:INTC), Apple (NASDAQ:AAPL)

Listening to Dell and Nokia on their terrible earnings reports, one would think that the entire tech sector is falling apart. Cramer pointed out a common tactic used by companies in trouble; blame the macro situation. However, Nokia and Dell have only themselves to blame for their poor performances, said Cramer. If demand is so bad, why are Apple's products flying off the shelves, and why did Intel report such a strong quarter? The bottom line: no one wants their products, so Cramer would ignore the dismal portrait painted by Dell and Nokia and sell the stocks.

Wells Fargo (NYSE:WFC), JP Morgan (NYSE:JPM)

Cramer referred to the time-honored saying that history repeats itself and thinks Thursday's news is a throwback to 1991. In the midst of a housing crisis and an economic slump, Wells Fargo announced that things were improving; the bank's optimism was dismissed as a pipe dream. JP Morgan's bullish remarks are also greeted with skepticism, which is not unsurprising given the number of foreclosures and the state of commercial real estate. However, Cramer urged viewers not to make the same mistake The Street made in 1991, and he dismissed remarks that the worst is behind us. While it is unlikely a recovery will come in an instant, Cramer has faith in JP Morgan's confidence.

CEO Interview: Moshe Gavrielov, president of Xilinx (NASDAQ:XLNX)

Although Cramer recommended Xilinx in March, this is one semi conductor that has not yet seen a boost. Declining gross margins are not a bullish sign, and Gavrielov admitted that supply issues have been hurting the company, although he adds these troubles are behind Xilinx. While China is one of Xilinx's main markets, Gavrielov says more could have been done to expand in that area. He added that comparisons to companies like Intel are misguided, since Xilinx's technology is more complicated and allows customers to modify chips. Gavrielov says Xilinx is diversifying beyond infrastructure and into consumer, aerospace and military markets. Cramer believes that Xilinx has plenty of room for improvement and believes the company can deliver.

Eureka Moment: Bank Warrant Auctions

When it comes to repaying TARP, the problem arises of how to price bank warrants the government received when it made the loans. If the prices are too low, the taxpayers have to shoulder more of the burden, but draconian prices would be hard on the banks. Cramer supported an idea espoused by David Bunting and Brett Haire of theStreet.com; auction the warrants. The Treasury knows how to manage the auctions and the solution will benefit everyone.

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