Cypress Semiconductor might have a market cap of $3.81 billion, but take away its holdings in SunPower and you’re left with only about $800 million.
To Cramer, that’s an undervalued company. Even co-founder, CEO and President Dr. T.J. Rogers admits he takes some heat from investors for that. But even still, he said, “The overall value of the company is reasonable.”
Rogers retold what he called a “classic Silicon Valley story” of how Cypress came to acquire SunPower . He bumped into an old Stanford Ph.D. alum who was about to layoff half of his company, which made high-efficiency solar cells. Cypress eventually bought SunPower and took it from a $2 million a quarter outfit to $175 million last quarter.
“This guy you don’t trade; this guy you invest with,” Cramer said. “This is one for those of you who want to be in tech and sun power – it’s CY.”
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