Cramer's 'Mad Money' Recap: Radvision's Clear Signal

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If you want to own a defense contractor rooted in the future, Radvision(RVSN Quote) is your stock, said Jim Cramer on his "Mad Money" TV show.

Radvision makes video-conferencing software that's currently being used by the Army in Iraq. Cramer doesn't care for most video-conferencing software stocks because the technology has historically been marketed to businesses, which don't have a great need for it.

However, the military has a big need for it, and Radvision has a big head start over its competitors, with its products already being used by the U.S. and Israeli armies.

Cramer says the market hasn't yet figured out Radvision's appeal to the military, and apparently Radvision's chairman agrees. He recently purchased 247,000 shares of his company's stock. Cramer thinks Radvision goes a "lot higher" once the market figures it out.

In response to a caller's question about Radvision's most recent quarter, which Cramer said was a disappointment, Cramer believes the quarter was a one-off event. The result is that the stock is now "too cheap."

Another caller asked about how Radvision might fare if troops were withdrawn from Iraq soon or if defense spending is cut. Cramer said Radvision's video-conferencing product is exactly the kind of thing that fits the transformation of the military as it tries to operate more cost effectively. Thus, even if defense spending is cut, Cramer said, Radvision's product "will still be purchased."

Cramer issued a 'mon back* on Cimarex Energy (XEC Quote), Valero Energy (VLO Quote), Halliburton (HAL Quote) and EnCana (ECA Quote), because it's not unrealistic to think oil could be going to $100 a barrel and natural gas to $20.

We're buying gas at "milk-cheap" prices, said Cramer, who pointed out that it's possible with a couple of cows to produce milk "with your bare hands." Gasoline, however, requires huge investments in capital, multiple stages of processing and transporting, and must be handled with extreme care.

"Cheap oil. It's a lie," said Cramer. Don't be fooled by any brief respite in gasoline or natural gas prices, he said. "Until your gas prices are at least two or three times the price of milk, I think you're still living in a world of cheap oil. You're living on the big lie."