"There are some
things you cannot do. There are times when you won't make
money. When you get beaten.
stocks after hours. Last Tuesday, Bristol-Myers
demonstrates my point perfectly.
The news came out
on 4:30pm on Tuesday that they were settling with Apotex over this
lawsuit challenging their Plavix patent - the biggest drug they have.
Do you know that,
by 4:33pm, the easiest money had been made? You think you can
go into the wild west, in the after hours trading, and beat the cowboys
out there. You just can't.
There are guys out
there. They are specialists, they are sharpshooters.
Sometimes you just
can't win. If you try to buy after hours, right when the news
comes out, I think you'll lose. And the fastest money guys
will always beat you to the punch.
If you want to buy
BMY after the Plavix settlement, you wait! Hey, maybe even
wait a week or two for some weakness, and then buy. Otherwise
the professionals will eat you alive.
So, here's the
bottom line: very, very few people have what it takes to buy
stock after hours and make money.
professionals. Please! Please!
Please! Do not try to beat them. Just
wait a week
or two for some weakness, and then buy. Because
these guys -
they're the real gunfighters and they'll blow you away if they have the
chance. I just don't want you to lose money and mess yourself
up if you don't have to!"
SIRF (SIRF TECHNOLOGY HOLDINGS, INC. )
still think there's
a lot of money to be made in tech. Especially in
semiconductors - in chips!
But you need to think harder,
and work harder, to get that money now.
In the old days, if I told you
to go and find the semiconductor money, you'd just go and buy yourself
a little Intel (INTC), and make yourself some serious cash.
But INTC, I'm sorry to say, is
no longer sitting on top of the world. I think it's going to
miss its qtr. Big! Intel is not the way to play the chip
Until INTC gets its act
together, that co. Needs to be treated like a thing a thing of the
past; I am no longer and Intel-aholic.
After INTC, we had Broadcom
(BRCM)! And we had marvel (MRVL)! Now, if you had
bought these guys when I anointed them, you could have made yourself
some serious mad money.
I'm not saying these two are
done. Oh, no, no, no! But I'm not doing a 'mon-back
on them any more. You know why? Because there are
now better opportunities!
These two chip co.s have made
their runs. The easier money is in, and that means it's time
for you to find leaner pastures.
So, how do we anoint the next
semiconductor king? I've always been a fan of the
When you bust open gadgets,
there is money inside, metaphorically speaking.
This hear (he holds up gps
handheld device) is one of Garmin's (GRMN) new g.p.s systems, busted
You'll find a chip from SIRF
technology (SIRF). SIRF is the undisputed leader in gps
chips. The more widely adopted gps becomes, the more money
you could make if you own SIRF!
So, do I think you should buy
it? Buy, buy, buy! But, only after you do your due
diligence, and only if you're willing to be patient and disciplined
when you buy the stock. That means waiting for weakness in
SIRF. It means gradually building a position over time.
Because, as I say in Jim
Cramer's real money: sane investing in an insane world., buying all at
once is the sin of arrogance!
Now, let me tell you why I
think you should buy SIRF...
Gps used to be too expensive
for the common man. It's still too expensive for the common
man, but it's gotten cheaper.
Whereas g.p.s. used to be for
the upper class, it's now cheap enough not for the members of the
middle class, but for the upper-middle class, who call themselves
middle class, because of America's weird reverse pessimism, or maybe
out of modesty. But I think it's that they're embarrassed to
We don't play it like that on
Mad Money. We love money on this show! We love it!
I think these people are now
going to spend this money - money that they're ashamed to have - on
g.p.s. systems for their cars.
The cheaper car systems should
You're also going to see more
g.p.s. systems in cell phones. Sirf sells to Nextel, sk
telecom, Motorola, lg. Right now, Qualcom (QCOM*) leads the
field in terms of market share for cell phone-based g.p.s.
I'd love QCOM* if it was a
person, and not a stock. But it's not a pure play on g.p.s.
which is really what I'm looking for here. QCOM* is a member
of the booyahcracy. That's a term I'll define for you some
QCOM* and Sirf make money
because the guys who make handsets want to make more money per phone
they sell. And they do that by including a lot of
unnecessary, ancillary features, like videos, like cameras, and like
Cell phones make up just 18% of
SIRF's revenue. But I've seen some reports that suggest that
this chunk of business could grow at a 50% clip. That's
They're going to have to duke
it out with QCOM*. I know, that's going to happen, and it
will not be pretty, but I think this market should grow fast enough
that there should be room for sirf.
The bottom line!: the
next chip co. That you need to make money... the next BRCM!
The next MRVL! I think it's SIRF!
I've anointed the new chip