Jim Cramer: Nice, L-3, SAIC, Riverbed, Intel, Foster Wheeler
Nice Systems Ltd. (NICE), an Israel-based maker of digital-recording products, is worth buying because of U.S. homeland security demand, Jim Cramer said on his ``Mad Money'' television program on CNBC.
Democrats will maintain security spending to avoid appearing weak while Republicans support surveillance methods such as wire- tapping, said Cramer, a market commentator and former hedge-fund manager.
Nice Systems expanded a distribution agreement with Avaya Inc. and won contracts for surveillance at the Eiffel Tower and with the Boston subway system, Cramer said.
Demand will rise from companies looking to monitor workers while the company is also beating competitors such as Verint Systems Inc. (VRNT) and Witness Systems Inc, Cramer said.
L-3 Communications Holdings Inc. (LLL), a maker of battlefield communications systems for the U.S., should be bought because of Air Force spending on unmanned aircraft, said Cramer, who recommended Honeywell International Inc. (HON), world's largest maker of airplane controls, if it falls to $40 a share.
SAIC Inc. (SAI), Boeing Co.'s partner in creating new combat vehicles for the U.S. Army, is worth buying. The company, which began selling shares to the public today, will continue to rise on demand from the Defense Department, Cramer said.
Cramer recommended Riverbed Technology Inc. (RVBD), a maker of appliances used to connect computers in wide-area networks, because he said more companies will try to connect their networks over wide areas.
The company, which began selling shares to the public last month, also has unrecognized revenue, Cramer said.
Software maker DivX Inc. isn't likely to be an acquisition target for Google Inc. (GOOG), said Cramer, who added that Syntax- Brillian Corp., a maker of high-definition televisions, should be avoided because of its stock's recent price increase.
Intel Corp. (INTC), the world's largest semiconductor maker, is worth buying because it's likely to raise its guidance next week, said Cramer, who recommended Broadcom Corp. (BRCM), a maker of chips for consumer devices, because the stock has been pushed down by investors expecting a poor quarterly report next week.
Foster Wheeler Ltd., Beckman Coulter Inc. and Whirlpool Corp. (WHR) should be bought because General Electric Co. (GE)'s recent earnings reflect strength in the infrastructure, biomedical and home-appliance industries, Cramer said. GE is CNBC's parent company.
NYSE Group Inc., the operator of the world's largest stock market, is worth buying because LaBranche & Co., its No. 1 market-maker, will report a bad quarter, reflecting NYSE's ability to cut costs, Cramer said.
Financial services companies Merrill Lynch & Co., Jeffries Group Inc. and Knight Capital Group Inc. (KCG) should be bought before next week because all three companies will report strong earnings, Cramer said.
American Standard Companies Inc., the maker of Champion toilets and Trane air conditioners, will have strong earnings on lower costs while carriers Continental Airlines Inc. and AMR Corp. (AAMRQ) ``will have blowout quarters,'' Cramer said.
Arena Pharmaceuticals Inc. (ARNA), a drugmaker, is worth buying because demand will rise for its treatments for obesity and diabetes, Cramer said.
Cramer recommended International Securities Exchange Holdings Inc., Best Buy Co., Corning Inc. (GLW), Au Optronics Corp. (2409), Children's Place Retail Stores, Inc., Sears Holdings Corp, Walgreen Co. (WAG), Rite Aid Corp. (RAD), Immucor Inc., Johnson Controls Inc. (JCI) in response to questions during the show's ``Lightning Round'' segment and said Toyota Motor Corp. (7203) would advance to $124 a share.
Investors should sell enough of Garmin Ltd. (GRMN) to account for profits from its recent rise in price, Cramer said.
Cramer said he owned Foster Wheeler and Sears Holdings for his charitable trust.
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