RF Micro CEO Talks Smartphone Revolution

Smartening Up?
Smartening Up?   

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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