Cramer's 'Mad Money' Recap: Arriving at a Logitech Afterthought

Click here for an archive of Cramer's "Mad Money" recaps.

---

Jim Cramer may disapprove of eBay's (EBAY Quote) acquisition of Skype, but that doesn't mean there isn't an "afterthought" way to make money on it he told viewers of his "Mad Money" TV show Thursday.

Logitech (LOGI Quote) is not just an afterthought play on Skype, it's the afterthought play on the whole Cramer tech rally, he said.

Logitech makes electronic peripherals such as Web cams, mouses, headsets, microphones, speakers and remote controls, all things you might purchase as an afterthought to your computer, iPod, big screen TV or cell phone, he said. It's the ultimate "pin action [stock] in the peripherials business."

Logitech's got the numbers, too, he said. Revenue is up 28% year over year. Diluted earnings per share are up 37%. Margins have been slipping, though, but only because of Logitec's success in the lower-margin audio products business, said Cramer.

Management is also committed to buying back stock, he said.

The stock is a little illiquid, though, said Cramer, so don't go chasing the stock. Wait for a pullback.

In response to a question about cable modem companies, Cramer said Conexant (CNXT Quote) is the way to play it, not Cisco (CSCO Quote), which is acquiring Scientific-Atlanta (SFA Quote). "Cisco has too many other businesses," he said.

Commenting on Level 3 Communications (LVLT Quote), Cramer said Level 3 is a "boring old phone company that's doing this VoIP." VoIP, or voice over Internet protocol, is a destructive technology that is "bringing down the price for everything." Cramer would stay away from the stock.