'RealMoney' Radio Recap: Fertile Ground

Disconnected

A caller wanted to know if Cramer would still buy Under Armour(UARM). Cramer said Under Armour exemplifies a classic disconnect between the company you're buying shares in and the shares themselves.

"The company makes perhaps the hottest line of clothes in America ... for men, for women, for youth. They make branded products made of synthetic microfibers that you play sports in."

But even though the products are great and the earnings results were decent, he said that on the conference call, "the company was as stupid as a bag of hammers."

"I was revolted on the call. I thought they handled everything wrong," he said, and the stock dropped from $38 to $28.

But the risk has now been taken out substantially now that we know management is capable of saying really dumb things, he said, adding that the stock may have bottomed.

But he said that he wouldn't put his entire position down now, but would buy in stages. "Buying all at once is the sin of arrogance."

Smith & Wesson(SWB) reported a great quarter, but then the stock fell. Cramer told a caller this happened because after issuing great numbers, the company rounded down earnings and said that its initial report "may not be as true" as what really happened.

That hurt the company's credibility, Cramer said, but long term, he likes the stock.

Smith & Wesson received a blessing from the federal government to defeat lawsuits brought by municipalities trying to blame homicides on gun companies.

He believes the stock could go to $8 from $5.80 over the next 18 months because of this ruling, a decline in costs and the fact that it is coming out with a line of fashion guns.

And although MRV Communications(MRVC) made a private placement, Cramer said that he still likes the stock.

"MRV did something I don't like," he said. "The stock runs up and management decided to sell 19 million shares to a couple of big guys who run the system ... it seems unfair."

However, it means that the company now has the capital to ride out this current cycle, he said, referring to the fact that MRV is involved in the effort made by phone companies to compete with cable companies.

He said the stock could come down a bit in the near term because of the placement, and that he liked MRV "more before they did the private placement."

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