Cirrus (CRUS) Needs a Bigger Bite of the Apple (AAPL)
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Cirrus Logic Inc. (NASDAQ: CRUS) shares are down another 4.72 percent to $13.12 in early market movement Friday following its third-quarter earnings miss reported on Thursday.
Jim Cramer said that he is "let down" by the company, and that he needs to see another quarter to make a judgement. Cramer agrees with the sell off in Cirrus stock following the results.
The company receives 44 percent of its sales from Apple Inc. (NASDAQ: AAPL), a great customer to have , but investors are worried that Cirrus product will not be included in future products from the iPad,and iPhone maker.
The recently release MacBook Air from Apple does contain audio components from Apple to add to its components for the iPad and the iPhone.
"Cirrus trades at just nine times next year's earnings, with $2 a share in cash, despite its 20-percent long-term growth rate. Given those numbers, the stock certainly looks cheap at least," Cramer said
Cirrus also makes chips for smart grid meters and seismic censors, a space that Cramer calls really bad.
"While its good to have arguably the best company in the world as your number one customer, we're not immune to overall economic issues. The Drilling moratorium didn't exactly help," Cirrus CEO Jason Rhode said in an interview with Cramer on CNBC's Mad Money on Thursday.
The company currently has $2 per share in cash, a hoard that Rhode said will be used to grow earnings in the most effective way possible, including looking at making an acquisition.
Jim Cramer said that he is "let down" by the company, and that he needs to see another quarter to make a judgement. Cramer agrees with the sell off in Cirrus stock following the results.
The company receives 44 percent of its sales from Apple Inc. (NASDAQ: AAPL), a great customer to have , but investors are worried that Cirrus product will not be included in future products from the iPad,and iPhone maker.
The recently release MacBook Air from Apple does contain audio components from Apple to add to its components for the iPad and the iPhone.
"Cirrus trades at just nine times next year's earnings, with $2 a share in cash, despite its 20-percent long-term growth rate. Given those numbers, the stock certainly looks cheap at least," Cramer said
Cirrus also makes chips for smart grid meters and seismic censors, a space that Cramer calls really bad.
"While its good to have arguably the best company in the world as your number one customer, we're not immune to overall economic issues. The Drilling moratorium didn't exactly help," Cirrus CEO Jason Rhode said in an interview with Cramer on CNBC's Mad Money on Thursday.
The company currently has $2 per share in cash, a hoard that Rhode said will be used to grow earnings in the most effective way possible, including looking at making an acquisition.
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