Cramer's 'Mad Money' Recap: Homeland Securities

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Is your portfolio prepared for a terrorist attack? On Thursday evening's "Mad Money," Jim Cramer provided a basket of stocks every investor should own for such a scenario.

Cramer said that the basket should include surveillance companies such as L-3 Communications(LLL Quote), ThermoElectron(TMO Quote) and Global ePoint(GEPT Quote).

In the biochemical/bio-threat arena, Cramer likes Cepheid(CPHD Quote), Steris(STE Quote) and RAE Systems(RAE Quote).

In IT security, Cramer likes CACI International(CAI Quote).

And for identity verification, Cramer likes Viisage Technology(VISG Quote) and Identix(IDNX Quote).

But Cramer cautioned that these are small, risky stocks. As such, this basket should be in your nonretirement portfolio. And they should make up no more than 20% of the portfolio. With that caveat out of the way, Cramer said: "I need you in these stocks now." Especially, he said, because these stocks are heading down, which means that investors have an opportunity to buy these at cheaper prices.

The 'Lightning Round'

Bullish

Cramer was bullish on: Sirius Satellite Radio(SIRI Quote), Harley-Davidson(HDI Quote), BP(BP Quote), Sun Life Financial(SLF Quote), Microtune(TUNE Quote), PG&E(PCG Quote), Deutsche Telekom(DT Quote), Duke Energy(DUK Quote) and Millennium Pharmaceuticals(MLNM Quote).

Bearish

Cramer was bearish on: PNC Financial Services(PNC Quote), SanDisk(SNDK Quote), DreamWorks(DWA Quote), Bioenvision(BIVN Quote), Kellwood(KWD Quote), Alvarion(ALVR Quote), Alcoa (AA Quote), Champion Enterprises(CHB Quote), Dynamic Materials(BOOM Quote), VeriSign(VRSN Quote), AT&T(T Quote), StemCells(STEM Quote), Redwood Trust(RWT Quote) and Novastar Financial(NFI Quote).

Skyworks Solutions(SWKS Quote) CEO David Aldrich was Cramer's first guest. After the bell, the company reported third-quarter earnings that were better than expected but warned that fourth-quarter sales would be softer than current analysts' forecasts. After Aldrich laid out the company's business prospects, Cramer said he expects the stock to pull back, but he would be a buyer of it if it does.

Cramer said he doesn't like Big Pharma on the whole, but does like Schering-Plough(SGP Quote). He spoke with CEO Fred Hassan, who said there are plenty of drugs in the pipeline and that the business is well. Cramer asked what Schering is doing that other companies in the pharmaceuticals business aren't. Hassan said his company is putting out products that are fast-growing. Though Cramer dislikes the pharma business, he said he would own this stock.

VF Corp.(VFC Quote) CEO Mackey McDonald also was on the phone. The company posted better-than-expected second-quarter earnings Thursday and raised its full-year forecast. Cramer said the stock is not expensive and the management is outstanding; VF is doing everything right, he said. Cramer believes investors should own the stock.

Cramer also said investors should take a look below the equator, to South America. He said it's capitalist down there now, gone are the days of the Shining Path. Cramer likes BanColombia(CIB Quote); it's in the financial services business, one of the hottest businesses in South America. The company pays a 4.5% dividend and is growing. It's also steamrolling the competition, and Cramer said he would own the stock.

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	1.	Pigs Get Slaughtered		2.	It's OK to Pay the Taxes
	3.	Don't Buy All at Once		4.	Buy Damaged Stocks
	5.	Diversify to Control Risk		6.	Do Your Homework
	7.	Don't Panic		8.	Buy Best-of-Breed
	9.	Defend Some Stocks		10.	Don't Bet on Bad Stocks
	11.	Own Fewer Names		12.	Cash Is for Winners
	13.	No Regrets		14.	Expect Corrections
	15.	Know Bonds		16.	Don't Subsidize Losers
	17.	No Room for Hope		18.	Be Flexible
	19.	Quit When Execs Do		20.	Patience Is a Virtue
	21.	Be a TV Critic		22.	When to Wait 30 Days
	23.	Beware the Hype		24.	Explain Your Picks
	25.	Find the Bull Market