Cramer's 'Mad Money' Recap: A Radiant Stock

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Jim Cramer came out on his "Mad Money" TV show Friday with guns blazing for Wall Street naysayers in the stock of Radiant Systems(RADS Quote). Cramer said the maker of point-of-sale touch-screen systems for movie theaters, restaurants and retailers is being held down by investors who "don't understand where it fits in the scheme of things."

Naysayers of Radiant point to a slowdown in movie attendance and a slowing economy, which they believe is hurting retail and dining out, said Cramer. But they are missing the point in that Radiant Systems is a play on increased productivity, which is always in demand, he said.

Cramer said Radiant recently raised guidance and has big growth potential. Its stock was up more than 6% Friday on news it had signed a deal with Citgo, and Cramer said it would have been foolish to wait any longer to recommend the stock because there is "too much chance good news could strike at any moment."

Those who are afraid to own Radiant just "don't get it," he said.

All the Extras

With the complicated new Medicare prescription drug plan taking effect, Cramer is bullish on pharmacy benefits manager HealthExtras (HLEX Quote) because "the more confusing things get for patients, the more demand there is for a benefit manager like HealthExtras to come in as a consultant and simplify the process for seniors."

Cramer likes HealthExtras over larger rivals such as Caremark Rx (CMX Quote) and Medco Health Solutions (MHS Quote) for its growth. Revenue is up 300% since 2002 and 27% in the last 12 months, said Cramer. Net income is up 32% in the last 12 months, and margins, which are "stronger than the rest of the industry," are increasing. Cramer said Wall Street expects 35% earnings growth for 2006, but he believes EPS growth will eclipse that rate.

Finally, with a market cap of about $785 million, HealthExtras is "in the sweet spot" to be acquired, and there is plenty of room for consolidation in the pharmacy benefits management industry, said Cramer.

Cramer believes HealthExtras is headed to $30. The stock closed at $19.87 Friday.