Cramer's Stop Trading! Intel Is Way Too Cheap (7/14/10)

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 |  Includes: ASML, CAT, DOW, FCX, INTC, IP, NVLS-OLD
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Wednesday July 14.

Caterpillar (NYSE:CAT), Freeport McMoRan (NYSE:FCX), Intel (NASDAQ:INTC), International Paper (NYSE:IP), Dow Chemical (NYSE:DOW), Novellus (NASDAQ:NVLS-OLD), ASML Holdings (NASDAQ:ASML)

The Street is punishing Caterpillar (CAT), Freeport McMoRan (FCX) and other industrials on China's lackluster GDP report, but Cramer concludes that since the orchestrated "soft landing" is intentional, any slowdown is temporary, and he would buy these stocks on weakness.

Intel (INTC) reported a good quarter, but The Street doesn't seem to care. Even with strong guidance, the stock gave back its gains yesterday. Cramer says Intel is "just too cheap" and is even less expensive than International Paper (IP) and Dow Chemical (DOW); "That's the first time I've seen this in my career."

Cramer also likes semiconductors because they have dropped unfairly, and not a select few, "but the whole panoply." He cited bullish data from Novellus (NVLS-OLD) and ASML Holdings (ASML) as reasons to be bullish on the sector.

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