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 , Palm , Research in Motion – 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, 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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