Cramer's 'Mad Money' Recap: That Which Converges Rises
04/11/06 - 07:35 PM EDT
TheStreet.com Staff
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"I'm hearing about digital convergence ... it sounds sexy. It sounds like it could make you money," Jim Cramer told viewers of his "Mad Money" TV show Tuesday. Convergence, he said, refers to the fact that cell phones are becoming the PCs of the future. Phones are being used more and more to download music and send pictures, tasks that up until recently have been accomplished with personal computers. We will soon have one device that will do everything, and it won't be made by Dell(DELL Quote - Cramer on DELL - Stock Picks), Cramer said. The latest convergence news is that cable companies are trying to forge relationships with wireless companies so that consumers can communicate with their televisions from miles away. And with all this convergence talk in the air, Cramer said the play is Openwave Systems(OPWV Quote - Cramer on OPWV - Stock Picks). He said that the company makes the browser that allows your phone to run all these new applications, and its software is already in almost a billion phones. The company already has more than 50% of the market share in handsets, he said, adding that it should only make more money as people use phones for more complex tasks.
Cramer admitted that the stock used to be "dot-com roadkill," but that it is now in the convergence vanguard.
He also said that sales of multimedia handsets should grow by 12% a year through 2009. And since the company is trading at less than one times earnings, the stock is a steal.
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