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Did you miss last night’s “Mad Money” on CNBC? If so, here are Jim Cramer’s top takeaways.
Analog Devices (ADI) : Cramer spoke with David Zinsner, CFO of Analog Devices about the Internet of Things market. Zinsner said, “The Internet of Things is really about taking information from the real world, bringing it up to the cloud, analyzing it, and making decisions based on it.” That applies to maintenance and health care, for example.
The IoT industry has plenty of growth, but self-driving cars are quickly becoming a hot growth trend for semiconductor stocks. Analog Devices is taking advantage of the trend with its Lidar product.
Most self-driving cars depend on radar, Zinsner explained, but Lidar is the next game-changing technology that will allow autonomous vehicles to get to the next level.
As for the financials, Analog Devices is a strong cash-flow generator, which will allow it to pay down debt quickly. The company’s $14.8 billion deal to buy Linear Technology (LLTC) hasn’t closed yet, but that will allow for strong revenue growth.
Analog Devices doesn’t have more than 10% of its revenue come from any one customer and it’s spread out over thousands of products, so its portfolio has solid diversification, Zinsner said.
Cramer said: This is a great stock to own before or after the deal to buy Linear closes. The company’s recent earnings results “blew out” the estimates and despite the recent rally, it looks like there could still be more room, he reasoned.
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