Cramer's Lightning Round - Defending Defense Stocks (9/20/10)

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Includes: AONEQ, BAC, GD, JPM, KBR, LLL, OC, WFC
by: Miriam Metzinger

Stocks discussed on the lightning round session of Jim Cramer's Mad Money, Monday September 20.

Bullish Calls:

General Dynamics (NYSE:GD), L-3 Communications (NYSE:LLL): "Well, you know, I think the defense stocks are so beaten up. This L-3 Communications... They're presuming that we're going to pull out of Afghanistan. They're presuming that we're not going to be involved in anything that I would regard as being counterintelligence. I think that's counter intelligent. I want to buy LLL. It's not the cheapest. General Dynamics is cheaper."

KBR Systems (NYSE:KBR): "Okay... here's what happened with that stock. It was trading in as cash. That was crazy. So I said it could go up a lot. You know what? It continues to go up a lot and, you know what? I still like it! So I want you to hold onto it... buy, buy, buy... because I think that's a winner. The engineering and consulting company that does construction. That's the good one!"

Owens Corning (NYSE:OC): "Yeah, you know. I think about how right I've been about security, and then I think back and say, I thought that great American company, Owens-Corning, which happens to make roofing but a lot of other things, including the Pink Panther of fiberglass... I thought that stock had bottomed. And sure enough, spank me and whip me... and obviously there's some core value here, but I think numbers are going to come down again tomorrow, and probably not going to bottom until it's at $21. My bad. I was too aggressive. I thought people would see through this downturn... they haven't seen through it. I reiterate my buy but, right now, I am wrong."

JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC): "Buy J.P. Morgan and buy Bank of America."

Bearish Calls:

Wells Fargo (NYSE:WFC): "Alright, it is my least favorite of all the big banks, because I think it may... they will disagree with us... but I think it's the one that needs more equity...sell, sell, sell... I say sell Wells and buy J.P. Morgan and buy Bank of America."

A123 Systems (AONE): "Lithium batteries is too dicey. I put a sell on this stock... sell, sell, sell! And I reiterate that I want you to sell into this spike. I think it's too dangerous. I don't like it, because I don't like the fact that it needs... Hey man, we've got to have companies with real big earnings here."

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