Cramer's Mad Money - Is Tech Coming Back? (4/29/11)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday April 29.

CEO Interview: Roy Vallee, Avnet (NYSE:AVT)

Is it time to get bullish on tech? Avnet (AVT), the largest supermarket of tech on Earth and the top distributor of electronic components and IT hardware, reported a fantastic quarter. Avnet is "the single best way to measure the health of the tech sector," Cramer said. Last year, Avnet's strong quarter was behind Cramer's catching the mobile tech and semiconductor wave on time. The stock is up 34% since last year, and it recently reported an 11 cent earnings beat with 16% higher revenue.

CEO Roy Vallee said that while spring is historically a weak season for tech, all of Avnet's segments are seeing higher than expected growth. Growth rates from data centers and cloud computing are both over 50%. "I'd call that pretty hot," said Vallee. As companies are buying more hardware and refreshing supplies, Avnet should continue to grow. The company should see a recovery in its Japan business by the end of the year. "This is a company that has had a magnificent run," said Cramer. "I bet it continues."

CEO Interview: Tim Boyle, Columbia Sportswear (NASDAQ:COLM)

While much of the retail sector is plagued by worries over raw costs, some companies like Columbia Sportswear (COLM) are in control of their destinies. The company recently beat earnings estimates by 8 cents, reported an 11% rise in revenues and is seeing backlog for fall up 19% and backlog for boot orders rising to 80%. The company expects higher operating margins going forward and has boosted its dividend 10%. COLM's stock is up 32% since Cramer got behind it in November.

Columbia Sportswear is a technology invention company that is in the retail sector; "Technology makes us different from our competitors," said Tim Boyle. The Omni Jacket, which has a special lining to repel the cold, has been "overdoubling" in terms of revenues. COLM has recently developed clothing treated with a natural substance to repel mosquitoes. There is no smell and the substance remains in the clothing for up to 70 washes. COLM's boots have been adapted for fashion as well as function and may well become the next UGGs. "We like this at $51," Cramer said. "Remember how this company delivered."

CEO Interview: Eric Wiseman, VF Corp (NYSE:VFC)

Few things are more frustrating than when a company seems to report a good quarter and then gets punished. VF Corp (VFC) beat earnings by 10 cents with a 12% rise in revenues and gross margins up 47.2%. However, the stock dropped 8 points. What happened? VFC ran up too much ahead of the quarter and gave guidance. The Street thought it was too conservative. Is the sell-off a buying opportunity?

CEO Eric Wiseman confessed he didn't understand the market's reaction to the quarter. One issue might have been worries over the company's inventories that were up 24%. However, Wiseman explained that this was intentional and the result of buying up inventory ahead to avoid high raw costs. When asked about the management's cautious tone on the conference call, Wiseman responded that he feels the company is being prudent and responsible with its guidance. China has been the largest growth country for VFC with a 56% increase in revenue in China since last year. The business in India is growing 80%. "All systems are go," said Cramer. "That is what we are looking for."

Sina (NASDAQ:SINA), Baidu (NASDAQ:BIDU), RenRen (expected to trade under the symbol RENN)

If you've been wanting to sell Sina (SINA) or Baidu (BIDU), wait for the IPO of China's Facebook, RenRen (expected to trade under the symbol RENN), which has 100 million users in China. This IPO will lift all boats in the Chinese internet space. Sina is up 31% since last month and was recently downgraded to a "sell" by Goldman Sachs. Cramer would wait for RenRen's public offering before selling Chinese internet stocks.


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