Idexx Labs (IDXX)
Ideas are running dry in this bear market, and Cramer is looking to the neglected area of pet diagnostics for new defensive plays, because "even in a recession, people still spend money on their pets." Idexx makes diagnostic tests and software for veterinarians and is coming out with new blood and urine tests. Cramer notes the company has a recurring revenue stream and $1.5 million remaining in the stock buyback program. The stock's rise of 75 cents when the market was down bodes well, according to Cramer, although he is concerned that IDXX price is double its growth rate. However, it is not levered to any troubled sectors.
Related: Daniel Jacome makes the bullish case for Idexx Labs.
Cramer continued his series featuring overlooked tech stocks and said he likes the sector because tech companies "march to their own tune, independent of the market." Riverbed "blew up" in October after a decent quarter and is still down, but Cramer sees potential in the stock because its Steelhead products allow corporate networks to provide high quality remote access services. Riverbed should easily beat its low estimates, said Cramer adding he would pay up to 80 times earnings for its 41% growth rate. "There aren't a lot of cheap stocks that work in this horrible environment," he said, "but Riverbed's one of them." On a side note, Cramer predicts a bottom for Apple on Wednesday.
Related: Tradermark calls RVBD a tech leader.
On AT &T CEO Randall Stevenson's comments concerning a slowing consumer business, the stock was knocked down. Stevenson set the record straight by saying business is still good in wireless, and Cramer doesn't think AT & T will suffer from the slowing economy. While he also likes Verizon, Cramer thinks AT &T, down 12%, is too good to pass up, especially since he expects it to beat its estimates and raise its dividend.
Cramer told one mailer not to sell all of his WB shares at once, but to wait for the stock to rise and then sell. Concerning HOG, Cramer dismissed the idea that the stock is overvalued and said he doesn't see a catalyst to bring the HOG up.
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