On tonight’s MAD MONEY on CNBC, Jim Cramer came out talking about all the core bit part prices coming down for products inside computers. Cramer thinks that DRAM is money in the bank, but not for DRAM makers. The way to win is the upcoming major upside surprise on May 16 that will be from Hewlett Packard (HPQ-NYSE). Cramer said it hasn’t participated in the rally and that will change when it reports. The upside will come because the computer components cost less and less. The new printers are going to breakthrough as well. This is one that will win because of margin expansion. The price savings goes right to the bottom line and Cramer thinks the EPS will be much better than $0.65 and will earn more than consensus for the year. It also does 1/3 of its business in the US, and this could add 5% or more to the bottom line because of the dollar devaluing.
Jon C. Ogg
May 3, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
