Cramer's 'Mad Money' Recap: Cubic Has Dimension
Click here for an archive of Cramer's "Mad Money" Recaps.
Cubic (CUB), which makes systems for defense and public transportation, stands to profit from the continuing fallout of last month's London subway bombings, Jim Cramer said Wednesday on his "Mad Money" TV show.
New York City announced Tuesday it will install 1,000 video cameras and 300 motion sensors in its subways to improve security. But Lockheed Martin (LMT), the lead contractor for the program, is too large a company to see an impact from the $212 million contract, Cramer said.Subcontractors, though, such as Cubic, are small enough that they could see some benefit. Cramer stressed he was interested only in buying Cubic's stock as a trade, and advised using limit orders to purchase the stock close to its Wednesday closing price of $18.40. A caller wanted to know if there were any security companies Cramer liked as an investment rather than a trade. Cramer endorsed L-3 Communications (LLL) but said there is nothing wrong with "making a couple bucks in the Cubic." Another caller wanted to know if there was a way to make money on the recently announced military base closures. Cramer said Lennar (LEN), a homebuilder, has had success turning one closed military base into homes. However, Cramer believes the general investment environment toward homebuilders right now just isn't favorable enough to endorse any homebuilder's stock. In response to a question about Symbol Technologies' (SBL) stock, Cramer said, "This is a tough call because the guy who left is the guy who talked me into buying the stock." (Symbol's former CEO, Bill Nuti, is now the CEO of NCR (NCR).) Cramer believes Symbol is "too oversold" at $8, but says the company is floundering without its former leader. "The smartest thing the company could do is put itself up for sale."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV