Mad Money's 4 Technology Stocks To Buy, 1 To Sell

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Includes: BIDU, EA, LNKD, TTWO, YHOO
by: Chris Lau

The U.S. stock market declined for the week for the first time since the beginning of 2012. The Dow Jones closed at 12,801.23, but is still up 400 points for the year. The Nasdaq Composite Index closed recently at 2,903.88, down 0.8% on February 10, but up 9.5% for year-to-date.

CNBC Mad Money's Jim Cramer was slightly less bullish for the week of February 6 - 9. Of the 53 calls he made, Cramer was bullish on 39 stocks (or 73.5%).

In the technology space, Cramer was bullish on 8 of the 9 companies:

#

Name

Call

Date

Avg Vol

52-Wk High ($)

52-Wk Low ($)

1

Yahoo! Inc. (NASDAQ:YHOO)

Sell

2/9/2012

18,765,400

18.84

11.09

2

QUALCOMM Incorporated (NASDAQ:QCOM)

Buy

2/6/2012

13,428,400

61.95

45.98

3

Apple Inc.(NASDAQ:AAPL)

Buy

2/9/2012

12,426,800

495.12

310.5

4

Broadcom Corporation (BRCM)

Buy

2/6/2012

10,127,700

43.88

27.59

5

Electronic Arts Inc. (NASDAQ:EA)

Buy

2/6/2012

7,362,690

26.13

16.85

6

Baidu, Inc. (NASDAQ:BIDU)

Buy

2/6/2012

5,583,560

165.96

100.95

7

Paychex, Inc. (NASDAQ:PAYX)

Buy

2/7/2012

2,799,380

33.91

25.12

8

Take-Two Interactive Software (NASDAQ:TTWO)

Buy

2/7/2012

2,442,350

17.58

10.63

9

LinkedIn Corporation (NYSE:LNKD)

Buy

2/9/2012

1,840,250

122.7

55.98

Click to enlarge

Cramer called Yahoo Inc. (YHOO) a "sell" at a time when trading action suggests further upside. Yahoo closed above $16 for the 6th time since November 2011. Further, should interest in social media plays decline, investors will look at Yahoo's lower valuation relative the more expensive plays. Yahoo continues to be a transition story. Roy Bostock, the company's chairman, along with three longtime board members, are leaving the company. Alibaba's plans to buy back Yahoo's 40 percent stake will also help Yahoo shares. Yahoo made the purchase in 2005 for nearly $1 billion.

Facebook's (NASDAQ:FB) IPO announcement stoked interest for pure play social media companies. This helped Electronic Arts (EA) see $20, along with EA's satisfactory quarterly results. EA saw its CFO, Eric Brown, leave to become Polycom's (NASDAQ:PLCM) CFO and chief operating officer starting on February 21. Cramer ranked EA a "buy." EA dropped another $0.21 after-hours on Friday February 10 to trade recently at $17.21. Cramer was bullish on EA in light of a release by 38 Studios.

Cramer was also bullish on Take-Two Interactive (TTWO). In its quarterly earnings, the company reported weak results due to weak "NBA 2K12" sales. The game was impacted by the NBA lockout. The company also gave a weak forecast because of delays in releasing "Max Payne 3." The company forecast a loss of $0.75 - $0.60 per share. Revenue is now expected to be $790M to $840, down from a forecast given in November. The previous full-year revenue forecast was $1B to $1.1B.

In the quarter, Take-Two earned $0.27 per share, while revenue dropped 29% to $236.3M.

LinkedIn (LNKD), which Cramer called a "buy," affirmed the strength for social media plays. In its earnings call, LinkedIn said that its cumulative member base grew over 60% for the third straight quarter to 145 million. The company added 14 million new members, of which, 60% of members now coming from outside the U.S. In 2010, non-U.S. members were 55%. LinkedIn closed at $89.96, up 17.76% after its earnings results.

Sticking to the bullish theme for internet plays, Cramer liked Baidu (BIDU). Baidu gives investors exposure to the growth of online advertising in China. iResearch said that online advertising in China exceeded newsprint advertising in 2011 (51.19B yuan versus 43.36B yuan).

Baidu is scheduled to report earnings on February 16.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in (EA) over the next 72 hours.