The euphoria for technology stocks and for Wall Street gained strength on the last week of January, helped by the Facebook IPO and a strong jobs report in the U.S. On CNBC's "Mad Money," Jim Cramer was bullish on 76.9% (40 of the 52) of the stock calls he made between January 27, and February 2, 2012.
Cisco Systems, Inc. (NASDAQ:CSCO)
Research In Motion Limited (RIMM)
Apple Inc. (NASDAQ:AAPL)
LSI Corporation (NASDAQ:LSI)
International Business Machines (NYSE:IBM)
Autodesk, Inc. (NASDAQ:ADSK)
KLA-Tencor Corporation (NASDAQ:KLAC)
Cypress Semiconductor (NASDAQ:CY)
In the technology space, Cramer was bullish on all but 1 company, Research in Motion (RIMM). Despite Cramer's call, RIM is set to release an updated version of Playbook 2.0 for its tablet this month. Playbook sales will not impact earnings significantly, but indicates positive development for Blackberry 10. The next-generation operating system is based on Playbook's QNX. The takeover rumors that gave momentum for RIM to trade 35.58% above its 52-week low ended. On February 4, it was reported that the Prime Minister of Canada would likely be cold to a hostile takeover of "critical technology."
During his lightning round, Cramer was bullish on LSI Corporation (LSI). LSI closed recently at $8.11 and is near its 52-week high. The company reported revenue of $523M, which was in-line the midpoint of its guidance. The "SandForce" acquisition is also seen by management to be beneficial in the growth of PCIe flash adaptors for use in Ultrabooks, notebooks, and enterprise flash/SSDs.
LSI generated $247M in operating cash flow for 2011. The company now has $935M in cash and has no debt. For the first quarter of 2012, the company forecast Q1 revenue of $550M to $590M. The GAAP earnings per share range is between negative $0.07 to $0.03. LSI will be hosting an investors day in New York City on March 14.
Both trading at a 52-week high, Cramer liked the large caps, [[IBM]] and Cisco Systems (CSCO). Both companies trade at a reasonable P/E at 14.80 and 17.47 respectively. Even with strong performance, IBM is reportedly set to cut 8,000 jobs in its German division.
Cisco Systems closed recently above $20 and has a market capitalization of $100B once again. The company will be reporting earnings on February 8, 2012. The average earnings estimate by analysts calls for an earnings per share of $0.38. With no "sell" recommendations, Cisco appears to be turning itself around after making drastic cuts to staff and management last year. Riverbed Technology (NASDAQ:RVBD), a Cisco competitor, reported earnings last week that implied that Cisco was starting to regain its competitiveness. Riverbed's forecast was weak because its product refresh cycle will take two quarters to gain momentum. Riverbed is $4 below a resistance price of $30. Cisco rose 3.7% last week to close at $20.09.
In the software space, Cramer liked Autodesk (ADSK). Early signs suggest that Autodesk will report strong sales. The company was named "reseller of the quarter" by KETIV Technologies. Autodesk closed at $37.85, has a market capitalization of $8.58B, and a P/E of 32.35. The AutoCAD maker is set to report earnings on February 23, at 2pm Pacific time.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.