Cramer's 'Mad Money' Recap: To Sirenza, With Love

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Sirenza Microdevices(SMDI Quote) could be a smart way to play Sirius Satellite Radio's(SIRI Quote) growth without having to pay for Howard Stern's huge salary, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Sirenza makes hardware that Sirius uses; and as a derivative play on Sirius, what's good for the satellite radio company is good for Sirenza, he said. But what's bad for Sirius may not necessarily hurt Sirenza.

Sirenza just reported earnings that were in line given the fact that it upped its guidance last month, he said, adding that the stock is trading flat.

Sirenza designs and sells radio frequency components that go into several products that are part of the Cramer tech rally. But the products Cramer cares about are the ones that are sold to Sirius, which amount to 15% of Sirenza's sales.

Specifically, Sirenza makes part of the antennae for the Sportster, Sirius' top-selling product.

If Sirius' subscriber numbers grow from 3 million to 10 million as Cramer thinks they might, that means stupendous growth for Sirenza.

Cramer reminded viewers that this is a derivative play, so there are some less-than-great elements that can be overlooked. For example, he said, the company is not as diversified as he would like it to be because it has only a few key customers.

But, he said, at the end of the day the company's revenue comes from Sirius.

The company also has plans to release new synthesizer modules for WiMax, which Cramer thinks of as a technology of the future that could someday be huge.

A caller wanted to know if there was a similar derivative play for XM Satellite Radio(XMSR Quote). He said that STMicroelectronics(STM Quote) would be the play but that he isn't as concerned about XM as he is with Sirius because XM doesn't have the same high programming costs.

So Cramer said that the best way to play XM is to buy XM.