Avanex Corp., a maker of fiber-optic parts, was recommended by CNBC host Jim Cramer on his ``Mad Money'' show because demand for components such as transmitters and amplifiers will rise from telecommunications companies like Verizon Communications Inc. and AT&T Inc.
Cramer, a market commentator and former hedge-fund manager, also said Avanex earnings may rise because the company is outsourcing much of its manufacturing, while its price-to-sales ratio is less than that of its competitors.
AngioDynamics Inc., a maker of medical devices, was suggested because demand for its laser-therapy products and catheters used to treat varicose veins will rise 20 percent a year as more people in the U.S. turn 60.
Laser treatment of varicose veins is preferable to other methods because it's less invasive, Cramer said.
Education Realty Trust Inc., an owner of student housing, will rise as wealthy students in the northwest U.S. look for alternatives to dormitories and student housing with bunk beds.
Shares of Sigma-Aldrich Corp., which makes chemicals for research laboratories, may rise because its earnings wouldn't be affected if the Federal Reserve continued to raise interest rates.
Cramer recommended Amgen Inc., Concur Technologies Inc., Yahoo! Inc., Sara Lee Corp., I-Flow Corp., Plum Creek Timber Co., Las Vegas Sands Corp., Schering-Plough Corp., Bear Stearns Cos., Grey Wolf Inc., Tellabs Inc. and Johnson & Johnson., in response to questions during the show's ``Lightning Round'' segment.
He told viewers to avoid Medicines Co., Genitope Corp., Flowserve Corp. and OraSure Technologies, Inc. He also said to buy Inco Ltd. if the stock falls to less than $43 a share. The closing share price today was $46.14.
Cramer said he owns Yahoo and Schering-Plough. for his charitable trust.