Cramer Changes to Anti-Tech (AAPL, GOOG, EMC, MSFT)

Jim Cramer is going anti-tech, again, yet for entirely different reasons than when he said "dump tech" in January 2007.  In January 2007, Cramer wanted to dump tech because of the seasonality of it and if you look back at that original article and then compare to today you’ll notice the different tone.

Today, in January 2008, he’s got a detailed outline on BloggingStocks today about why this time is different.  For starters, he says nothing in tech is working.  The call on Apple (AAPL) is negative, Google (GOOG) is floundering, Microsoft (MSFT) isn’t moving, EMC (EMC) is still dragging, and well, you can read the rest of the article over there.  Interestingly enough, most of the "overlooked and oversold tech" selections were not noted today.  But this is truly a different tone than before and if you have been watching MAD MONEY on CNBC or even his other writings and appearances, then you’ll know this has been brewing for about a week.

We often take a long-term value approach to stocks, and with technology we look at the "long-term opportunity" rather than just "dump the whole sector" when it isn’t working.  But we also lose interest after certain groups make exponential run-ups because NOTHING LASTS FOREVER.  What we think traders need to do now is look at their tech stocks, determine which ones will weather the slowing economic storm, what a fair entry price is, and then determine which ones are best to own.

Jon C. Ogg
January 29, 2008