Although a major beneficiary of some of the biggest trends in technology, Cramer on Friday said few investors are willing to buy shares of Silicon Graphics.
Why? It's being held back by its name, Cramer explained.
Silicon Graphics is the name of a company that went bankrupt in 2009 and therefore lost some investors a lot of money. Cramer thinks this stock is worth another look, though. In May 2009, Rackable Systems bought Silicon Graphics out of bankruptcy. During the merger, Rackable executives made the decision to stick with Silicon's name because it is loved by customers. Leading into bankruptcy, Cramer said Silicon had a lousy management team, but Rackable's CEO stepped in after the merger. Silicon's enormous debt load went away, too. It now has $3.80 of net cash per share, even though it's trading at roughly $14 a share.
"Because of the name change, the new SGI has been ignored, if not downright despised," Cramer said, adding that just two analysts cover the stock. "I think SGI would be substantially higher if they had only kept the Rackable name, but that’s okay, because their pain is your opportunity. You get to buy this speculative stock at an incredible bargain price, not because their business is bad—it’s going great guns—but because of a nomenclature issue."Page 1 of 3 | Next Page