Cramer on Oversold & Value In Tech (WIND)

On tonight’s MAD MONEY on CNBC, Jim Cramer is sticking with picking technology stocks that are either oversold or are great value.  His down and out tech stock is Wind River Systems (NASDAQ: WIND).  In light of BEA Systems buyout he thinks it could get acquired.  It makes embedded systems for autos, routers, jets, and more, and the complex new systems will drive demand ahead.  It has joined the Google Android Alliance for open handsets.  An analyst noted several significant deals in the pipeline and its balance sheet is strong.  SAP, Oracle, Cisco, IBM, Motorola could all be buyers of this company.  Cramer thinks maybe Carl Icahn would want to look at it, but he likes it even if it doesn’t get acquired.

This week Cramer has made several value calls on oversold technology companies that will still do well in the current environment.   On Monday, Cramer picked EMC Corp (EMC) for its intrinsic value of sub-$5.00 and this is one where we noted that great value manager Whitney Tilson was discussing with "THE EMC STUB" with the explanation for the trade; on Tuesday, Cramer picked Riverbed Tech (RVBD) for network optimization and he’s been on this stock before; and last night Cramer talked up ADC Telecom (ADCT) with a $1 down $7 up call that he’s liked for some time.

Wind River shares closed down 2.6% at $8.15 today, but this rose 5.5% to $8.60 in after-hours. 

Jon C. Ogg
January 17, 2008