Between March 15 and March 21 2013, companies mentioned by Jim Cramer leaned towards the more favorable. Of the 49 companies mentioned, 39, or nearly 80% of the companies were bullish calls.
In the technology sector, all of the large capitalization companies were bullish calls. Only Dell (DELL) was considered a company to avoid:
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1. Dell Inc. (DELL, Earnings, Analysts, Financials): Sell. It makes sense for investors to avoid Dell, even though shares pay a $0.32 per share dividend. Shares are already range-bound at around $14, but still 16% a 52-week high. As Dell is taken private, investors should not expect another bid to emerge. The company continues to rely heavily on the PC sector, and plans to grow by focusing on sales in the enterprise space. The problem for Dell is that its workforce is specialized for selling desktop and laptop computers. A shift to enterprise markets will be difficult: Dell cannot raise money through the issuance of shares. By raising debt, interest payments will need to be paid annually.
2. Intel Corporation (INTC, Earnings, Analysts, Financials): Buy. Cramer liked Intel. The chip giant is 25% below its 52-week high, but investors receive a dividend of $0.225 per share per quarter, or around 4.25%, for holding its shares. Even with a weak PC market, Intel is positioned to supply chips for tablets. Strong Windows Surface Pro sales compared to RT suggest that Intel is the CPU of choice for Windows-based tablets.
Intel recently signed a deal to make chips for Altera (ALTR). This should diversify revenue sources away from the PC sector.
3. Cisco Systems, Inc. (CSCO, Earnings, Analysts, Financials): Buy. Cisco shares dipped sharply in recent trading, dropping 5.6% from a 52-week high of $21.98. Shares pay a dividend of $0.56 per share, or 2.7%. Cisco was downgraded by FBR on March 21. FBR cited weak SDN adoption, known as software-defined networking, as a reason to expect low-margins.
Cisco recently announced a 100G optical transceiver.
4. Cypress Semiconductor Corporation (CY, Earnings, Analysts, Financials): Buy. Cypress shares are off nearly 35% from its yearly high. The company pays a dividend yielding 3.97%. In Q4, Cypress provided negative guidance, and said it expects revenue for Q1 to be $163 million to $170 million, translating to flat to $0.02 earnings per share.
5. Jabil Circuit Inc. (JBL, Earnings, Analysts, Financials): Buy. Jabil shares pay a dividend of $0.32, yielding just 1.72%. Shares sold off sharply in recent sessions, closing at $18.56. Jabil guided its Q3 revenue will be below consensus. The company expects revenue to be between $4.3 billion and $4.5 billion. This translates to $0.50 to $0.60 in earnings per share, below the $0.61 consensus estimate.
Written by Chris Lau
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Dig Deeper: Access Company Snapshots, Charts, Filings
- Dell Inc. (DELL, Chart, Download SEC Filings)
- Intel Corporation (INTC, Chart, Download SEC Filings)
- Cisco Systems, Inc. (CSCO, Chart, Download SEC Filings)
- Cypress Semiconductor Corporation (CY, Chart, Download SEC Filings)
- Jabil Circuit Inc. (JBL, Chart, Download SEC Filings)