Jim Cramer's Wall Street Confidential, 10/17/07: Intel Shorts Dwarfed

Recap of Jim Cramer’s comments on Wall Street Confidential, Wednesday October 17 Click on a stock ticker for more analysis:

Intel (INTC)

Those shorting Intel were taken in by a Wall Street Journal article which indicated there was double ordering of the company's chips. Shorts who believed there would be an inventory problem for Intel got a nasty surprise; "When you go into the fourth quarter with lean inventories, and these were the leanest inventories in years," said Cramer, " that means you're going to see average selling price not come down, maybe even lift a little."

Shorts were confused because, "A lot of people don't understand the nature between the media and what happens," Cramer said. "It's really remarkable how powerful the press is, particularly when it's emphasizing a negative story right at the time when a really positive story comes."

Cramer predicts a January surprise since inventory is low, revenue guidance is higher and gross margins are increasing. "This was a beautiful Intel quarter, just a beautiful one," he said and added the stock is a "screaming buy" anywhere below $27, and will go to $30.

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