Jim Cramer shares his views every day on RealMoney.
Cramer: Takeover Talk Drowns Out Earnings Report
Posted at 4:01 p.m. EDT on Friday, Oct. 21, 2016
Takeovers just change the equation. They scare shorts, and shorts are integral to putting out supply that often tends to stop stocks in their tracks.
Take this Time Warner (
Likewise, if we get more consolidation in the semis, meaning if Qualcomm (
Normally, we would be focused just on earnings, but these takeovers hijack the narrative. But these days it's too hard to just focus on earnings given that these companies are huge and make it so other than the hundred-billion-dollar club you have to expect that anything can happen.
I find it ironic given that the Feds just blocked Lam Research (
No matter, the prospective deals are in control and there are lots of tales to spin that make a ton of sense even when the fundamentals may be weaker than expected.
Cramer: Lam Research and Skyworks Are Priced Too Conservatively
Posted at 6:17 a.m. EDT on Friday, Oct. 21, 2016
The idea of a peak in the semiconductor cycle--cellphone, semi equipment, whatever--flies in the face of every quarter I am hearing, yet it remains a dominant theme among the mutual and hedge fund managers I listen to.
When they aren't being out-and-out bearish, most of the managers that come on television or talk about the market can't find a cycle that they like. But they can easily find ones they don't: namely anything having to do with cellphones and cellphone chips, because of problems with Samsung and because
First of all, cellphones are now part of a vast ecosystem that devours all sorts of chips to do everything. A cellphone that runs in conjunction with the connected home and the connected car is not some hardware device. It is a complicated machine that does all sorts of thinking and learning for you and is packed with chips.
It's the same thing as a car. That's not going to be a piece of hardware, it is still one more delicate piece of machinery that is loaded with chips, typically chips that are made by the same companies as those in a cellphone.
Everyone seems to want to pigeonhole Skyworks into a chipmaker for cellphones, and I am not going to say that it isn't. Apple and Samsung matter tremendously to it. But Skyworks is only one acquisition away from being Broadcom (
What can I say? I thought the KLA-Tencor (