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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Feb.15
7:07 PM ET
Friday, 15 Feb 2008
Cypress Semi CEO on Consumer Slowdown

If there's a company destined to feel the effects of declining household spending, it's consumer electronics chipmaker Cypress Semiconductor. And with Best Buy [BBY  Loading...      ()   ] cutting its profit forecast, investors have to wonder what's in store for CEO T.J. Rodgers' firm. It was too early to tell when the chief executive appeared on Mad Money in December, so Cramer invited Rodgers back to get a snapshot of where Cypress [CY  Loading...      ()   ] is right now.

Rodgers pointed out that Cypress’ slide over the past couple months is directly correlated to the performance of its subsidiary SunPower, a solar company that’s seen a precipitous decline in recent weeks along with the rest of the once-hot solar industry.

As a rule of thumb, Rodgers said that Cypress shares tend to move in line with SunPower [SPWR  Loading...      ()   ]. For every $4 that SunPower goes up or down, Cypress moves about $1 in the same direction. When Rodgers was last on Mad Money, SunPower was at $128. Now it trades at $79.

With oil still hovering close to $100, solar energy is far from dead. In an economic slowdown, the first thing people delay is that expensive rooftop solar installation, Rodgers said. Until the consumer gets its groove back, SunPower – and Cypress – are likely to feel the pain.

Rodgers said he doesn’t feel optimistic about a quick turnaround in consumer spending. But when it happens, Cypress will be back in play, Cramer said.




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