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Buy because of income, not because of trade agreements.
Last night we had a Broadcom Monster District (AVGO) and all I can say is that Hock Tan is back. His curious amalgam of hardware and software works. Its CA integration is superb.
But the most important thing is that networking is on fire – the Internet of Things and it's great for everyone, from Cisco (CSCO) to Dell (DELL), to VMWare (VMW), and of course, Amazon (AMZN).
The quarter was a vintage vintage with a clear vision and many congratulations from analysts, even though he claimed that cell phones were still very weak. It's good, nothing new. I just liked the fact that he said the rebound for chips was imminent, which also allows you to buy Western Digital (WDC), Micron (MU), Texas Instruments (TXN ), Analog Devices (ADI) and NXP Semiconductors (NXPI). Best of all the equipment cycle is back and this ticked the box that Lam Research (LRCX) put on saying that the return is there and that it's time to buy a fifth of the company on the open market.
Needless to say, Broadcom is always cheap. Lam is always cheap. Micron is always cheap. And the VanEck Vectors Semiconductor (SMH) fund is worth buying.
In the meantime, I continue to hear that there is an impending trade deal with China.
I do not think that's the case. There is still a lot of work to be done to enforce and remove current rates, which the administration is LOVING more and more. So, if you buy, buy where the income is. That's the ticket.
(Cisco, Amazon and Lam Research are part of the Jim Cramer Action Alerts PLUS member club.) Do you want to be notified before Jim Cramer buys or sells CSCO, AMZN or LRCX? Learn more now.)
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