Jim Cramer Says ON Semiconductor (ON) is the Laggard Semi That Can Play Catch Up

What happened: Jim Cramer said on Mad Money that ON Semiconductor (NASDAQ:ON) is a laggard chip stock that can play catch up, citing the recut Synaptics deal from $7 billion in stock to $5.7 billion in cash. Key numbers: Shares traded around $83 on October 7, down 4.40% Why it matters: Cramer said the renegotiated deal removes the overpayment objection that he traced the decline to, and described the overhang as no longer a problem. The wide gap between trailing and forward multiples means the catch-up is already expected, since profit has to nearly triple for the forward figure to be met. Market: -2.6% by next close ($55.95 on Oct 12), -31.0% YTD

Jim Cramer said on Mad Money that ON Semiconductor (NASDAQ:ON) is a laggard chip stock that can play catch up, citing the recut Synaptics deal from $7 billion in stock to $5.7 billion in cash.

Cramer said the renegotiated deal removes the overpayment objection that he traced the decline to, and described the overhang as no longer a problem. The wide gap between trailing and forward multiples means the catch-up is already expected, since profit has to nearly triple for the forward figure to be met. Market: -2.6% by next close ($55.95 on Oct 12), -31.0% YTD