The Semiconductor Index (SMH) broke it’s 100-day moving average, explains Joe Terranova. In this space it’s important to be selective. I like Broadcom (BRCM), NetApp (NTAP) and Novellus (NVLS).

Semiconductors are making so much money that it looks like the orders are roaring in for an ASML (ASML) or a Novellus (NVLS). Do you want to get short ahead of Intel? Ahead of IBM (IBM)?

I’m bullish on Novellus (NVLS) and Teradyne (TER) as plays on increased demand for semiconductors, adds Joe Terranova.

What is real news? Cramer said it's railroad CSX (CSX) beating its numbers. He said it's semi-conductor equipment maker Novellus (NVLS) not getting crushed at this point in the economic cycle. What is real news? Cramer said it's railroad CSX (CSX) beating its numbers. He said it's semi-conductor equipment maker Novellus (NVLS) not getting crushed at this point in the economic cycle. Read more here.

"SanDisk (SNDK). Apple (AAPL). Novellus (NVLS). Dell (DELL). Seagate (STX). Hewlett-Packard (HPQ). These were all pushed and pushed hard today by Wall Street, and I think that you cannot ignore these. (I see Doug Kass is buying the PowerShares QQQ Trust (QQQQ), so he must have the same feel.)" "Tech for a Trade," 7-10-09

Novellus recently hit a low on abnormally low volume – a good sign that suggests investors are reluctant to sell right now. If it begins to trade higher past its 50-day moving average, consider buying… it’s a sign that the bulls have power in this play.

I am happy to buy puts on an Applied Materials (AMAT), a KLA-Tencor (KLAC), a Novellus (NVLS) and the like. This group is endlessly hyped by Wall Street, and I am not buying it at all.

Cramer: Downgrades Make No Sense
Off the Ford downgrade, Jim Cramer plays offense.

Click here to watch the video.

Goldman Sachs said it is cutting its rating on Novellus (NVLS) to Sell from Neutral based on expected order declines. Recent analysis of DRAM supplies and spending indicates that fundamentals will remain weak in 2008, with significant oversupply during the first half of the year. Price target at $20.

Novellus Systems Inc. said last week its board approved an additional $1 billion in stock repurchases.

San Jose-based Novellus said that adds to the about $300 million remaining under the previously authorized program.

"We remain confident in our technology and productivity-leading position today and its competitiveness into the future," said Richard S. Hill, chairman and chief executive. "We believe that our common stock repurchase program is an excellent use of excess cash from operations to increase shareholder value."

The stock trades for 6x cash flow.

sold