Making Circuit Boards Smaller
In the "Executive Decision" segment, Cramer once again spoke with TJ Rodgers, president and CEO of Cypress Semiconductor (CY), which just launched a new subsidiary, Deca Technologies.
Rodgers explained that while chips have been getting smaller and smaller, the traditional green printed circuit boards that they get soldered to haven't. He said if the leads coming off of a chip were the width of a finger, it's like soldering them to a lead the width of a freeway.
Enter Deca Technologies, a wholly-owned subsidiary of Cypress that is working on micro-printed circuit boards. Rodgers said that these new circuit boards are so small that chips can be rearranged on the tops and bottoms of the boards, essentially making a "computer on a cube" that could house the Library of Congress on a fingernail.Rodgers said that Deca Technologies didn't invent this technology, but is using the processes developed by Cypress' other notable spin-off, Sunpower (SPWR) to perfect the technology and make it affordable for consumer devices. Rodgers said the market opportunity is $1.5 billion and is growing at 15% a year. When asked if the plan would be to spin off Deca as a separate company as it did with Sunpower, Rodgers said that is indeed the plan. Finally, when asked if he was optimistic about the quarter for Cypress, Rodgers said that he's more certain and the company's factories are producing as a reasonable rate. Cramer remained bullish on Rodgers' ability to innovate and of Cypress' ability to reward shareholders.
Mastercard Gets NodIn a new segment called "Tweet Like Mad," Cramer answered questions he received @JimCramer on Twitter. Asked whether Visa (V) or MasterCard (MA) is the better play, Cramer said that while both companies are good, MasterCard would ultimately get his vote. Cramer explained that unlike the banks, credit card processors don't loan money and simply make their money from the dollar volume they process. That means both companies are plays on the move from paper to plastic in the emerging markets. Both stocks have had big runs, with MasterCard already having moved 66% on the year. But Cramer said that MasterCard has more international exposure, as well as more opportunity to take share and improve its margins, which ring in at 55% versus 64% for Visa. MasterCard is moving in the right direction, he noted. Trading at 17 times earnings, MasterCard is still inexpensive since the company has already reaffirmed its growth targets, he said.
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