RF Micro CEO Talks Smartphone Revolution
RF Micro Devices is up 109 percent since Cramer first got behind on June 18, 2009. It’s up 15 percent just since reporting a solid quarter last week. But is the move sustainable? Are there more gains to be had?
That’s a question Cramer had for CEO Bob Bruggeworth. And he brought the RF Micro boss on “Mad Money” Monday to talk about it.
Real quick, though, to give you a quick idea of just what this company does: It’s a semiconductor name whose chips enable mobile phones to communicate with networks. Hence the RF, which means radio frequency. Cramer thinks the stock is a great play on his favored smartphone revolution because there are $5 to $6 of the company’s chips in every one of those high-tech handsets.
“So the more smartphones we buy,” Cramer said, “the more product RFMD moves.”
Despite this strength, though, RFMD trades at just 10 times next year’s earnings on a 15-percent long-term growth rate. To Cramer, that’s just too cheap for a company this good.
Watch the full interview here.
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