Jim Cramer’s 16 Stock Calls, Including NVIDIA, Coterra, and Honeywell

9. Dell Technologies Inc. (NYSE:DELL)

Dell Technologies Inc. (NYSE:DELL) was among Jim Cramer’s recent stock calls on Mad Money. When a club member mentioned that they took up Cramer’s suggestion of switching into DELL from SMCI, he commented:

That’s, you know, I really gotta tell you, this Super Micro always left me cold because they have an SEC investigation, and Michael Dell is probably about the best there is.

Dell Technologies Inc. (NYSE:DELL) provides storage systems, servers, networking gear, and consulting services, as well as laptops, desktops, workstations, and accessories. Cramer mentioned the company during the March 19 episode and said:

The key was to buy Dell small and then keep buying it as it got cheaper. That’s how you get a better cost basis. You buy what I call a pyramid style, cheaper and bigger. You had to ask yourself if anything was really wrong with that sickening decline down to $110. But if you did the homework, you would’ve known that everything was good. Frankly, if you just watched the show, you would’ve known.

If you waited to buy the stock until the coast was clear, well, the coast never goes clear. It’s not the way it works. You’ll miss the move. In retrospect, we marvel at how easy it must have been to buy Dell near its lows, dividend increase, giant buyback ton of orders. It seemed totally getable, but it was only getable to the people who believed that the stock was wrongly priced higher. Believe me, that was not the conventional wisdom at the time. Now, let me give you some caveats. Not every kind of stock can be bought steadily on the way down.

It doesn’t work… [for] companies that have no earnings, miserable balance sheet, magical investing, they may never bounce. But with a fine company like Dell, where the CEO has a terrific track record, you can get incredible bargains if you’re simply willing to buy the stock at moments where it’s wrongfully hated. We didn’t catch Dell for the Charitable Trust. I keep mentioning it on air, which locks us out of buying it for the investing club. That’s how we missed it. But you could have easily gotten this one yourself if you just watched the show. In the end, though, this method only works if you have conviction because it requires taking some pain, and that’s impossible to do if you don’t believe in the underlying business, and of course, the CEO.