MAD MONEY: CRAMER PICKS TECHS

Cramer started his show saying that now techs are something that you can keep as something defensive because of their strong balance sheets and cash holdings.  He suggested Intel, INTC,  Texas Instruments, TXN, Cisco Systems, CSCO and Microsoft, MSFT.  But he was a fan of Intel because August was usually the bottom of the tech market and suggest everyone should buy this stock.  (Disclosure: I hold Intel Oct Calls).  Cramer says it’s cheap, flushed with cash and growing quickly. 

Once again Cramer reiterated that Ben Bernanke needs to cut rates!  He told Ben to stop thinking about inflation because this environment is deflationary and should take a trip to the bond desk instead.  Jim said “Bond traders are afraid…AAA-rated mortgage bonds are trading horribly or not at all.”  Cramer says this panic is not pricing the bonds correctly because of the liquidity squeeze and panic.  While he claims that the Europeans heard him, Ben has turned a blind ear to his claims!  I need to refinance my house soon…let’s cut some rates!

SHORT LIST:

Cramer said everyone has to sell MGIC, MTG, MBIA, MBI, KB Home, KBH, Blackstone, BX, Centex, CTX, Beazer Homes, BZH, and Washington Mutual, WM.   Cramer said “Greed is not good…The Market makes you pay for it”

FLASH MEMORY TRADE:

Cramer pitched SanDisk, SNDK as a tech to benefit from the flash memory market which is the fastest growing market in the semiconductor market according to CEO Dr. Harari and he doesn’t see it ending soon.  With Apple, AAPL using flash and mobile products becoming more of norm, everyone can see that it’s going to expand in the next few years.  Even today with the blood in Wall Street, SanDisk was up almost two percent!
LIGHTNING ROUND HIGHLIGHTS:

Southern Copper, PCU: “A lot of these mineral stocks are being hit by funds that are blowing up that own these. … A lot of them own PCU. … You’ve got to wait until $90 before I would buy it, and the reason why is because the holders are so bad. … But this one has a 6% dividend. When it gets down to my level … pull the trigger.”

“My favorite speculative stock in the group is Nastech Pharmaceutical, NSTK”

 “Best of breed in the space, Cramer said, is Schlumberger, SLB”  Once again picking the oil sector.  

“I like Allegheny Tech, ATI. It’s better than Titanium. I’ve been saying that for years. It’s definitely better.” as a pick for metals.  

Progressive, PRG: “The earnings are going to explode for Progressive. PGR is a great stock to own here! … Progressive is two tumbs up.”  I’m not sure about this one in the insurance industry but Berkshire Hathaway’s insurance sectors had good markets but we’ll see.  

Progressive, PRG, Allegheny Tech, ATI, Schlumberger, SLB, Nastech Pharmaceutical, NSTK, Southern Copper, PCU, MGIC, MTG, MBIA, MBI, KB Home, KBH, Blackstone, BX, Centex, CTX, Beazer Homes, BZH, Washington Mutual, WM, Intel, INTC,  Texas Instruments, TXN, Cisco Systems, CSCO, Microsoft, MSFT