Many of you may have gone to the movies and, after all the expense and hassle of overpriced food, tickets and rude fellow theatergoers, it may not come as a surprise to you that movie attendance is at its lowest since 1997, Jim Cramer told "RealMoney" radio show listeners Monday.
Movie owners have something to worry about, particularly with competition from DVD sales, and newer and better home theater systems, he said. "But they're not worried. They're bullish," said Cramer, citing a story in USA Today in which theater owners believe that because going to the movies is a unique experience, theaters are here to stay. "When I see that, I see one thing. I see the fundamentals deteriorating, despite what the theater owners say," he said. Just because movie theater owners are saying that there aren't problems, don't go out and buy Regal Entertainment(RGC Quote) and Carmike Cinemas(CKEC Quote), said Cramer. Only the rare manager will admit when there really are problems, and Cramer believes that these stocks are riddled with problems. Pioneer Telephone Cooperative, a small Oklahoma-based company, is among the first to put equipment in homes that allow consumers to wirelessly receive television service, Cramer said, calling this one of the most exciting developments in the ongoing cable/telecom wars. Pioneer enables companies to provide service without having to go out to the subscriber's house to do the wiring, and this could make cable companies very vulnerable if consumers can get their channels without a hard line, he added.
Ruckus Wireless will supply wireless service to Pioneer, but Cramer said that the way to make money is to buy stock in the equipment makers that Ruckus uses.
Those companies are Broadcom(BRCM Quote), "which makes all the parts of the wireless infrastructure," and Marvell Tech(MRVL Quote), which provides wireless technology for controllers on game consoles.
These companies make the key parts that allow Ruckus to equip your house with wireless technology, he said. And even though the stocks are up a lot, Cramer said they could be worth buying because they are the Intel(INTC Quote) and Advanced Micro Devices(AMD Quote) of the next generation."
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