Jim Cramer: Flir, Genesee & Wyoming, Applied Micro Circuits

Flir Systems Inc. (FLIR), the maker of night-vision cameras, was recommended by CNBC host Jim Cramer on his ``Mad Money'' show because revenue will continue to rise on U.S. Defense Department demand for surveillance products abroad.

Cramer, a market commentator and former hedge-fund manager, said sales may also be boosted by orders for more port-security cameras if the U.S. government approves the sale of six seaports to a state-owned Dubai company.

Genesee & Wyoming Inc. (GWR), owner of railroads in five countries, was also recommended instead of the larger rail companies because ``they can't grow anymore,'' Cramer said.

Genesee & Wyoming, which hauls freight over short distances, ``last quarter grew their American revenue by 2 percent year- over-year,'' he said. ``I have no doubt that they will keep up the momentum.''

He told viewers to avoid the larger railroad companies, Burlington Northern Santa Fe Corp., Norfolk Southern Corp. (NSC), CSX Corp. (CSX) and Union Pacific Corp. (UNP)

Applied Micro Circuits Corp. (AMCC), a maker of semiconductors used in networking gear, was recommended because components for optical network are in short supply, ``and that's enough to propel the stock higher,'' Cramer said. In addition, the company has new product, a chip that Cramer expects will be in high demand in the U.S.

Cramer also recommended shares of energy-related companies Dynegy Inc., Mirant Corp. and El Paso Corp, and package shipping companies such as FedEx Corp. (FDX), Forward Air Corp. (FWRD) and United Parcel Service Inc. (UPS)

Other stocks recommended during the ``Lightning Round'' include Nokia Corp., VeriFone Holdings Inc., Sara Lee Corp., BHP Billiton Ltd. (BHP), First Marblehead Corp. (FMD), Flow International Corp. (FLOW), Acadia Pharmaceuticals Inc. (ACAD), Commerce Bancshares Inc., Alcan Inc., UBS AG (UBSN), Legg Mason Inc. (LM), Shaw Group Inc. (SHAW), and Yahoo! Inc. (YHOO) Sunrise Senior living Inc. was also recommended.

Cramer urged viewers to avoid Taser International Inc. (TASR), Axcan Pharma Inc., Sovereign Bancorp Inc., H&E Equipment Services Inc. (HEES), Marchex Inc. (MCHX) and Harley-Davidson Inc. (HOG)

To contact the reporter on this story: Samantha Zee in San Francisco at szee@bloomberg.net

To contact the editor responsible for this story: Dan Reichl at dreichl@bloomberg.net.

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