Mad Money

Cramer: Can Xilinx Continue to Thrive?

Investors need to get more defensive and return to the core themes that Mad Money traced out at the beginning of this year, Cramer said. They work well on down days like today.

Plus, after a 213-point loss in the Dow, Cramer said, it’s worth taking a look at one of the few stocks that actually went higher. Xilinx, up a strong $1.31, resisted the vicious downward gravitational pull of this sell-off. 

Programming Profits?

XLNX is a mobile Internet tsunami play, Cramer said, that showed growth in all its end markets and regions, according to their earnings report yesterday. The stock is now up 18.5% since Cramer added it to the Mad Money Mobile Internet Index on Aug. 11, when it was trading at $21.31.

Xilinx is the largest supplier of programmable-logic-device chips, which are in all kinds of gadgets, switches and base stations. These chips are flexible, meaning they can be sold to many different manufacturers for various different applications. This makes them both cheaper and allows them to reach the market more quickly.

XLNX earned 40 cents a share for the quarter, beating Wall Street’s consensus by 5 cents, on sales that were up 12% year-over-year. It generated a ton of cash, Cramer said, and unlike most tech stocks it pays a dividend, which yields 2.5%.

But Cramer, as well as some analysts, are concerned about how much longer Xilinx can thrive in a world of high unemployment in the US and the potential for reduced lending in China. To find out what the company is doing to rebut those worries, Cramer turned to Xilinx’s CEO Moshe Gavrielov for answers. Watch the video for the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

Related Tags