Cramer's CNBC Mad Money Tech Picks for 7/24/07 are CSCO and TXN

To be continued ...

Cramers Tech Pick on CNBC Mad Money 7/23/07 is - SanDisk (SNDK)

Cramer likes the Technology sector and his pick today was SanDisk Corp.

Cramer liked SNDK for 3 reasons -
1. Great earnings & projections
2. Fall and Christmas season is big tech buying season
3. Flash memory are in demand in fast-growing mobile devices

I took a peek at SNDK and it didn't look very attractive right now from a fundamentals perspective. It currently trades at a high multiple. However, if the Earnings per share are going to rise, the same multiple may look cheap near term.

Higher the risk, sweeter the reward and vice-versa.

Position: The writer had no position in SNDK at the time of writing this article.

SUN is cheaper than Hess, BP and XOM, but is it ready to move? I have two better names.

Stock: Sunoco Inc.
Symbol: SUN
Price COB 7/23/07: $75.53
Sector: Oil & Gas

Jim Cramer recommended SUN on 7/12/07 on CNBC’s Mad Money show as a part of the 80 to 120 group stocks. On 7/12/07, SUN closed at $83.69. Today, it is at $75.53. The cause of this fall can be attributed to the latest downgrades by analysts. Do I agree with their downgrades? What would I do? Well, to answer those questions, lets do some homework.

Fundamental Analysis: SUN trades at a multiple of 8.85 compared to HES and BP, which trade at multiples of 13.30 and 11.54, respectively. The average multiple for Oil & Gas Refining & Marketing industry is 13.60.

Even though fundamentals based on P/E ration look good, Technical Analysis shows some bearish signals right now.

It is not a clear winner since Jim recommended it, so I’d say jump on ships that are moving up faster. Or perhaps, wait for it to trend upwards again. Again, know the risks of investing and ask your financial advisor before making any trade decisions.

Further research on SUN yielded two other names. On Yahoo message board, I read a rumor that SUN is going to make a bid for TSO. TSO has a P/E of 8.74, cheaper than SUN. Also, I noticed that VLO has a P/E of 7.88. Perhaps, TSO and VLO are better plays than SUN. Time will tell!

Position: The writer had no position in SUN at the time of writing this article

Homework on APA yields a better name APC

Stock: Apache Corp.
Symbol: APA
Price COB 7/12/07: $84.89
Sector: Energy

Fundamental Analysis: APA trades at a multiple of 11.88 compared to BP and XOM, which trade at multiples of 11.59 and 13.02, respectively. The average multiple for independent oil and gas industry is 17.05.

So far, it looks good. If this stock traded at the multiple at which Exxon Mobile trades, it would be at $93.02. If it traded at the industry average, it could reach $121.82.

However, this research points to a better name in this industry namely APC. Anadarko Petroleum Corp. (APC) trades at a multiple of 5.61 and is more apples to apples comparison to Apache Corp. If APC traded at the same multiple as APA, it could be up from $51.96 to $109.86. The fundamentals using EPS and multiple look better. Why don’t you like APC Jim?

CNBC Mad Money w/ Jim Cramer (07/12/07)

Jim Cramer is my Guru, teacher and the one who got me into the market. I'm a newbie still learning day in and day out. From now on, I'll try to use Jim's strategy to do Homework on stocks he recommends in his show. Here's my notes from his show this evening.

Jim Cramer's stock that go to 80, then to 100 and then to 120:
- Air Products & Chemicals Inc. (APD), Price COB 7/12/07: $85.91
- Apache Corp. (APA), Price COB 7/12/07: $84.89
- Energizer Holdings Inc. (ENR), Price COB 7/12/07: $106.73
- Sunoco Inc. (SUN), Price COB 7/12/07: $83.69
- Southern Copper Corp. (PCU), Price COB 7/12/07: $109.02

Carbon Composite stocks used in dreamliner
- Allegheny Technologies Inc. (ATI), Price COB 7/12/07: $114.30
- Haynes International Inc. (HAYN), Price COB 7/12/07: $95.25

A stock that 8.5 Billion Dollar man George Soros owns in his portfolio that Cramer likes is
- Gen-Probe Inc. (GPRO), Price COB 7/12/07: $59.98

Bullish on
- CVS
- LVLT
- EMC
- Walmart
- Cisco
- ACAD
- OMTR
-TOPT
- AMD
- DVR
- HERO
- PCU

Bearish on
- Target
- XMSR
- DEO
- KKR
- BX
- Apollo

Other comments
- Oil is one of Cramer's favorite Bull Market

Thanks to CNBC and Jim Cramer for hosting such an informative show.

Congratulations fellow longs! Today is our day to celebrate. DOW at record high close of 13,861.73

I will do homework on some of these stocks and present them next.

I like Starbux coffee. I love SBUX as a stock

Company: Starbucks Corp.
Symbol: SBUX
Closing Price (COB Jul 5, 2007): $26.34

Starbucks may not be as steller a growth story as it once was, due to rising dairy costs, efforts to reduce carbon emission, etc. But, I see that its trading near its 52 week low.

Some people want returns tomorrow, but if you are in for the long haul, SBUX is a good stock to look at, IMO.

FYI - Bear Sterns recently lowered SBUX price target from $47 to $35. I disagree with the move.

Position: The writer had no position in SBUX at the time of writing this article.

Take on JNJ

Company: Johnson and Johnson (JNJ)
Symbol: JNJ
Price (Close of Jul 3, 2007): 61.95

According to Yahoo! Finance, JNJ has a PE ratio of 17.66, compared to industry average PE of 23.46. Company is well run and is a great long-term play in my mind. Guess, who else is loading up on it? Warren Buffett? Maybe ... do your own homework.

I would buy some for my kids when i have kids.

Position: The writer had no position in JNJ at the time of writing this article.