Jim Cramer's Mad Money In-Depth Stock Picks 7/03

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday July 3. Click on a stock ticker for more analysis:

Defense and Security Picks: General Dynamics (GD), Analogic (ALOG), Nice Systems (NICE), Osi Systems (OSIS), Viisage Technology (VISG), Axsys Technologies (AXYS), and Edo (EDO)

Although Cramer does not believe we are in a security and defense bull market yet, he lists these seven as stocks to watch.

1. General Dynamics (GD): Since Cramer recommended this stock in April, it has been down 7%, and although he likes the company's buyback strategy and generous dividends, he would hold off on buying it.

2. Analogic (ALOG): This company has taken a beating, is down 25% since April and has reported a lackluster quarter. Cramer believes that one of the reasons Analogic "got killed" during the selloff is that it is a high-growth and high-multiple stock. He likes Analogic because they are also involved in health care, and insists that those who don't buy this stock when its low will "defend themselves from an ugly missed opportunity."

3. Nice Systems (NICE): This Israeli company has moved up 30% since Cramer's recommendation in March and has reported a good quarter. He says that Nice is an aggressive play.

4. Osi Systems (OSIS): Since Cramer's recommendation of Osi in March, the company won a $125 million lawsuit against L-3 Communications. It also reported a great quarter, with 6 cents a share of earnings and increased its revenue by 26%.

5. Viisage Technology (VISG): This stock declined after Cramer recommended buying it February because of "... arbitrage pressure from the Identix (IDNX) merger," Cramer said. "When a face-recognition company merges with a fingerprint ID company, you've got a police-state powerhouse."

6. Edo (EDO): Cramer sees the potential of this company to make cutting-edge products, such as its V-22 Osprey, which is a combination of a plane and a helicopter.

7. Axsys Technologies (AXSYS): Cramer predicts substantial innovations from AXSYS.

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