Cramer Highlights MagnaChip Semiconductor Stock

Monday, 14 Nov 2011 | 7:07 PM ET
Under the Radar Stock: MagnaChip
MagnaChip is a super cheap chip stock, selling at just 5 times forward earnings, says Mad Money's Cramer. The company could stand to profit from the new Samsung Galaxy, and is a terrific speculative way to play an orphan stock with a ton of potential, but only at the right price, and "right" price means $7.75/share or less.

Cramer on Monday highlighted MagnaChip Semiconductor's stock--an under-the-radar, technology pin action play.

MagnaChip is a Korean semiconductor company that primarily makes chips that power the displays in mobile phones, tablets, digital TV sets, notebook computers, flat panel monitors and digital cameras, as well as the popular Samsung Galaxy line of smartphones and tablets. MagnaChip is a tiny, $298 million company with a stock that trades at around $7. So if the new Samsung Galaxy gets a lot of traction, Cramer thinks it could move the needle for MagnaChip's stock.

Cramer warned viewers that MagnaChip is highly speculative, though. He told viewers not to buy shares after-hours and avoid paying up for this stock, too. Being as it hasn't traded higher than $8 since September, he wouldn't pay more than $7.75 a share.

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