Jim Cramer's Mad Money In-Depth Stock Picks, Oct. 12
Nice Systems (NICE), Avaya (AV), Verint Systems (VRNT), Witness Systems (WITS), Comverse Tech (CMVT), Honeywell (HON), L-3 Communications (LLL), and SAIC (SAI)
Cramer likes domestic-security stock NICE and even though it is up 20%, "I need you in it," he said. The company is immune to politics, is cheap and has solid fundamentals. Nice recently made an agreement with Avaya that will improve security at the Eiffel Tower and a deal to make the Boston subway's automated-fare operations more efficient. Although Nice has some competition with Verint, Witness and Comverse, it is trading at 21 times next years earning and should surpass other companies. When asked about Honeywell as a defense play, Cramer said he preferred L-3 Communications and commented that SAI which recently went public is "good to go."
Related: Shlomo Greenberg discusses Nice's edge over Verint.
DivX (DIVX), Riverbed Tech (RVBD), Juniper Networks (JNPR), Citrix Systems (CTXS), Hewlett-Packard (HPQ), McData (MCDTA), Cisco (CSCO) and NEC (NIPNY) -
Although almost all of tech sector is on fire right now, Cramer suggested that the way to make really mad money is to find newly public companies. DivX was an IPO that saw some early succes and Cramer predicts the same strong performance for Riverbed Tech which became public in September and is already up $3. However, it is not too late to pick up RVBD since it is "beating Cisco at its own game," according to Cramer by making products for companies that need to extend their wide-area networks or WANS. Although there is some competiton RVBD is making a higher quality product and the company's balance sheet is "a thing of beauty" according to Cramer who suggests picking some up while it is "on the ground floor." RVBD currently has licensing deals with HPQ, MCDTA and NEC and Cramer notes that JNPR, CSCO, CTXS are not grabbing too much market-share.
Related: Evelyn Rubin discussess RVBD's IPO.
Stocks for Coming Week: Intel (INTC), Broadcom (BRCM), General Electric's (GE), Foster Wheeler (FWLT), Beckman Coulter (BEC), Whirlpool (WHIR), LaBranche (LAB), NYSE Group (NYX), Merrill Lynch (MER), Jefferies (JEF), Knight Capital (NITE), American Standard (ASD), AMR (AMR) and Continental (CA)
Cramer suggests investing in the coming week with a view to the rally in tech which he believes should continue into November and is going to expand to include semiconductors. INTC has moved up recently but Cramer is not sure whether or not it will go up higher, but believes that when it raises its guidance there should be a bounce. He suggests buying it before it reports and even after since "there will be money to be made." Cramer expects Broadcom's number on Thursday to be "hideous" but recommends it because he expects a dramatic upside, and GE's earnings indicated strong infrastructure, appliance and medical which will help FWLT, BEC and WHIR. An "awful number" from LAB could be beneficial for NYX. Cramer recommends getting in MER, JEF, NITE, ASD, AMR and CA before their earnings reports on the following week.
CEO Interview: Jack Lief, Arena Pharmaceuticals (ARNA)
Jack Lief discussed ARNA's success in drugs for obesity and diabetes; locaserin passed Phase II clinical trials and the partnership with Johnson&Johnson (JNJ) on diabetes medication has yielded a $5 million payment. Cramer called ARNA "the spec play of the year."
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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