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The wonder of cell phones, or portable communication, has long since passed. Even text messaging is a given at this point. Nowadays we want our handsets to have cameras, video, e-mail and the Internet.
The trend toward smartphones and mobile Web is on par with the advent of the PC, Cramer said. It will play out on such a scale that we’ll think it as common as cable television. As a result, almost an entire industry will benefit from the move. Investors could, of course, buy the usual suspects – Apple [AAPL
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], Palm [PALM
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], Research in Motion [RIMM
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] – but a smaller, more speculative play might generate more returns.
That’s Cramer’s thesis, and he has been making recommendations based on that reasoning. The latest? RF Micro Devices [RFMD
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], chipmaker for smartphone firms. The company is a huge beneficiary of the 3G wireless build-out, and customer demand is on the rise again. Also, at a recent investor conference, RF Micro said that its cash holdings are up, order activity is solid and visibility for the third quarter has improved.
This is a single-digit stock, though, as RFMD trades at $3.51. And that’s after a run from the 52-week low of 70 cents a share. To be sure of his call, Cramer decided to check in with CEO Robert Bruggeworth. Watch the video for the full interview.
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