Fast Internet, cloud stocks look good

Names like F5 and are on a tear, and you could buy them at a discount as China's inflation plan slows the market.

By Jim Cramer Nov 19, 2010 9:43AM

jim cramerSure wish China had tightened its lending policy before we rallied a percent and a half and before the big General Motors (GM) deal and before the nice run in tech and minerals and oil.


But that didn't happen.


It is too bad because we were building up a legitimate head of steam. Now we could be back in macro-land unless the dollar stays down and oil goes higher, as the drumbeat is already on for Portugal now that Ireland looks "solved."


For a moment, though, let's bask in some things that have occurred, micro-wise, that do matter.


Last night, (CRM) just crushed the expectations and gave an outlook for next year that I think implies perhaps 30% growth. And that's before we get the new products to be announced in two weeks that I am told could be breathtaking.


This is a company that is putting on ARG -- accelerated revenue growth -- that only Apple (AAPL) can match. How many companies do you follow that, after six unbelievably great quarters, then put up a seventh with faster growth than the past six? How many companies do you follow that have a division -- in this case the Chatter division -- that could be the corporate Facebook but isn't even reflected at all in the valuation?

That's why people pay 70 times earnings for this, the highest multiple stock I follow, because it is a market-capitalization play. There is no way that this company should be only a $15 billion company -- one-tenth of Oracle (ORCL) -- when its market opportunity and share possibilities are accelerating.


Put simply, I think CRM is Amazon (AMZN) to Oracle's Wal-Mart (WMT).


The fact is that in the past 24 hours we heard confirmatory comments from tech companies in the fast Internet -- F5 (FFIV) -- storage -- NetApp (NTAP) -- and cloud (CRM) segments that indicate things are terrific. Sure, we didn't hear anything that special in the mobile-phone arena that should make us think there is anything wrong or right there, but you can't have it all in one day!


So, when we get the macro sell-off that is the delayed China rate rise and we begin to see oil roll over or the dollar go higher -- as counterintuitive as that is with Ben Bernanke defending his position all over the place -- remember that the cloud, storage and fast Internet are very much alive, breathing and, for that matter, in some ways, accelerating. And all at a discount, courtesy the Peoples Republic of China.


At the time of publication, Cramer was long Apple and Oracle.


Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.


Follow Cramer's trades for his Charitable Trust.


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