On today’s Wall Street Confidential video on TheStreet.com, Cramer said that he thinks Linear Technology Corp. (LLTC-NASDAQ) is the key to the chip stocks much more than Intel (INTC-NASDAQ). LLTC shares are up more than 12% on the day.
He thinks people are misinterpeting Intel (INTC-NASDAQ) as the key for the chip sectors. He thinks Linear Tech (LLTC-NASDAQ) is driving the chip stocks because they are raising cash to buyback one-third of the company. These chip and equipment companies have such large cash positions that the companies all have to worry about being taken over. All the short sellers in Applied Materials (AMAT-NASDAQ), Novellus (NVLS-NASDAQ) and KLA-Tencor (KLAC-NASDAQ) shorts have to be running for cover after this. Cramer says IBM (IBM) is not a factor on this regardless of what they said about capital expenditures because technology is not monolithic.
Jon C. Ogg
April 18, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.