Jim Cramer is a former hedge fund manager. Cramer expresses his views on stocks during his TV shows, which has helped many ordinary investors who watch his show daily on TV make their own investments. We believe that by focusing on Jim Cramer’s top recommendations, investors are more likely to beat the market in the long term. In this article, we are going to focus on the technology stocks Cramer are bullish about recently. All companies have at least $10 billion market cap and were recommended by Cramer during his TV show over the past month.
Apple Inc (AAPL): AAPL is the technology stock that recommended by Cramer the most times over the past month. Cramer recommended investors to buy AAPL on January 4, 9, 18, and 20. Hedge funds agree with Cramer. As of September 30, 2011, there are 125 hedge funds with AAPL positions. For example, Tiger Cub Stephen Mandel and Chase Coleman are both bullish about AAPL. Mandel’s Lone Pine Capital had $785 million invested in AAPL and Coleman’s Tiger Global Management LLC had $646 million invested in AAPL at the end of the third quarter. AAPL has a market cap of $392B and a low forward P/E ratio of 10.72. It returned 10.22% so far since the end of September, versus 16.99% for SPY in the same period. We are long-term bullish about Apple because of its low valuation and high growth expectations.
Intel Corp (INTC): Cramer also mentioned INTC more than once over the past month. He recommended “Buy” for INTC on January 4 and January 20. Hedge funds agree with Cramer’s judgments about INTC as well. There are 42 hedge funds with INTC positions at the end of the third quarter. For example, Ken Fisher’s Fisher Asset Management had $414 million invested in INTC. Jim Simons’ Renaissance Technologies also invested $200+ million in this stock. Intel reported net income of $3.4 billion for the fourth quarter of 2011, up from $3.2 billion for the same quarter a year earlier. INTC has a market cap of $134B and a relatively low forward P/E ratio of 11.08. It was up 24.73% since the end of September, beating the market by 8 percentage points. We are also long-term bullish about Intel because of its low valuation.
AT&T Inc (T): AT&T provides communication services in the United States and worldwide. During the past month, Cramer also recommended investors to buy T twice. He mentioned the stock on January 3 and January 4. A certain number of hedge funds agree with Cramer. For example, Cliff Asness’ AQR Capital Management had $100+ million invested in T at the end of September. Since then, the stock returned 10.22%, lower than the 16.99% for SPY. But T seems to be trading at a discount. The $181billion market cap stock has a low forward P/E ratio of 12.45. We like AT&T’s high dividend yield and relatively high growth rate for a high dividend stock. This is one of our long-term positions in our portfolio.
Cramer is also bullish about Applied Materials Inc (AMAT), American Tower Corp (AMT), Broadcom Corp (BRCM), Google Inc (GOOG), International Business Machines Corp (IBM), Microsoft Corporation (MSFT), QUALCOMM Incorporated (QCOM), and Texas Instruments Inc (TXN). We like technology stocks. We have Microsoft in our portfolio and plan to add other names when their prices reach more attractive levels. We believe technology stocks are undervalued as a sector as most of them are trading at attractive multiples. We strongly encourage investors to do some deep research on the technology stocks that Cramer recommended recently. The only large-cap name we would add to this list is Dell (DELL) which was bought by David Einhorn during the fourth quarter.