3 Tech Buys, 4 Sell Calls From Jim Cramer

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 |  Includes: BBRY, CREE, GLW, GRMN, INTC, MSFT, NFLX
by: Chris Lau

The stock market continued to climb to levels not seen since the highs of July 2011. The Nasdaq composite index closed at 2,816.55 up 167.83 points or 6.33% from the January 2012's start of 2,648.72. CNBC Mad Money's Jim Cramer was no contrarian during the January 20 - 26 trading sessions. He made 52 "buy" calls and just 12 "sells." Compared to the 81% of the calls as "buys," Cramer made 63% (7 of the 11) "buy" calls for broadly traded technology stocks as listed below:

#

Name

Call

Date

1

Corning Inc. (NYSE:GLW)

Sell

1/25/2012

Vmware, Inc. (NYSE:VMW)

Buy

1/24/2012

Broadcom Corporation (BRCM)

Buy

1/24/2012

SAP AG ADS (NYSE:SAP)

Buy

1/24/2012

2

Research In Motion Limited (RIMM)

Sell

1/23/2012

3

Cree, Inc. (NASDAQ:CREE)

Sell

1/23/2012

Apple Inc. (NASDAQ:AAPL)

Buy

1/23/2012

4

Garmin Ltd. (NASDAQ:GRMN)

Buy

1/20/2012

5

Intel Corporation (NASDAQ:INTC)

Buy

1/20/2012

6

Microsoft Corporation (NASDAQ:MSFT)

Buy

1/26/2012

7

Netflix (NASDAQ:NFLX)

Sell

1/26/2012

Click to enlarge

Corning (GLW) - Sell

Cramer was bearish on Corning. Corning reported earnings that were weakened by lower utilization rates of panel makers in Korea. The company forecast higher utilization rates for the current quarter, but the price decline for its product is a strong negative.

A positive note is that gross margins were at all-record highs at $978M. Gross margin rose to 47.1% from 44.3% in the previous quarter. Corning expects LD TV unit sales to grow 13% in 2012.

Corning closed at $12.62, 45.41% below its 52-week high.

Research in Motion (RIMM) - Sell

Cramer said not to "bet on tech turnarounds like RIM." He was critical of the CEO's ability to strengthen brand awareness and to grow sales.

Volatility for trading in RIM is high, but some positive developments are emerging. The company will be releasing a version 2.0 for Playbook's operating system. Early leaks of the Blackberry 10 roadmap had a positive reaction from traders during the week. Shares moved up from $15 on January 24th to $16.80 on January 27th.

Cree Inc. (CREE) - Sell

For the week of January 20, Cree said it expected earnings (per share) from a range of $0.18 to $0.25. Analysts on average had expected $0.30, with an EPS range of between $0.24 and $0.35.

Cree is up substantially for 2012. The stock started the year at around $22 and traded recently at $26.56, up 20.5% year-to-date.

Garmin Ltd. (GRMN) - Buy

Since bottoming in the low $30s in September 2011, Garmin traded recently at $41.80 and pays a dividend of $1.60, or 3.80%. Investors were bearish on Garmin for most of last year because of competition from smart phones. The GPS functionality is already available on smart phone devices.

Garmin is fighting back to maintain its relevance. The company will be showing its lineup of Apple's iOS applications and new social features at the Macworld event.

The company will be reporting its quarterly earnings on Wednesday, February 22, 2012 at 10:30 a.m. ET.

Intel (INTC) - Buy

With Intel just $0.25 from its 52-week high, Jim Cramer ranked the stock a "buy." In its most recent report, Intel said that its profit grew 6 percent. This result was accomplished in spite of hard-drive shortages in the computing market.

Intel broke its 2-year long trading range of $18 - $23, trading recently at $26.81. Microsoft Windows 8, a new marketing blitz in ultra books, and ongoing initiatives in mobile devices are the main reasons why Intel is holding its gains. Microsoft (MSFT), which Cramer is bullish on, is also trading like Intel's shares. Traders recently bid Microsoft to $29.48, well-above the $23-25 trading range.

Netflix (NFLX) - Sell

Traders were caught off-guard when Netflix reported fewer customer losses than expected. Shares rallied 22% to $116 on the news.

Speculators should be cautious on Netflix. Consumer defection subsided in the quarter, but the company's moat is eroding. For example, it was reported that it would face restrictions similar to its competitors. Warner Brother films could previously be seen once available. Now consumers will have to wait 28 days after release.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.