This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Your Chance to Buy Apple (Final)

Replacing Starent

With Cisco's (CSCO) recent announcement of its purchase of Starent Networks (STAR), Cramer said it's time to ring the register on Starent and look for a replacement stock for his Mobile Internet Index portfolio of stocks.

He then said that ARM Holdings (ARMH) is the perfect stock to fill Starent's shoes.

Cramer explained that ARM Holdings is a semiconductor intellectual property powerhouse. The company's high performance, low-power processor designs are licensed to a staggering 95% of all smart phones and mobile devices and have become the new standard for the the red hot netbook computer category.

Cramer said ARM's business model makes sense for semiconductor and device makers since it spreads the costs of developing the ever more complicated processors among the entire industry. By licensing ARM's technology, companies and quickly and cheaply roll out new and faster devices.

With ARM's practical monopoly on the mobile processor market, Cramer said the company's multiple of 25 times its projected earnings actually makes the stock cheap, especially given the company's 30% projected growth.

Biometric Plays

When it comes to securing the homeland, Cramer said no area is more exciting than biometric, the art of identifying the bad guys from their fingerprints, faces and other physical characteristics. For "Speculation Friday," he "identified" not one, but two, stocks that investors should consider.

Cramer said L-1 Identity Solutions (ID) and Cogent (COGT) are two leaders in the biometrics field.

He explained that L-1 Identity Solutions has technology that moves beyond fingerprints, to identify people by their faces, irises and beyond. The company has equipment in Iraq and Afghanistan, and is working to secure business for driver's licenses in the state of New York as well as the Mexican national ID program.

Cogent is a pure play on finger-print technology, as the company mainly administers the U.S. Visitor's Program, which helps speed frequent fliers through customs. This company too has a lot of room for growth, said Cramer, as it competes for contracts from the U.S. Army, the U.K. Post Office and others.

Among the two, Cramer said Cogent is the safer bet, with $5.86 a share in cash on the books, while L-1 Identity Solutions is risker with less cash and more debt. Both companies trade around 18 times their earnings and have a 20% growth rate.

Cramer said there's no hurry to buy either stock. He said he'd wait for a market pullback to do some homework before pulling the trigger.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ONNN $0.00 0.00%
AEM $35.64 0.88%
CERN $54.90 1.76%
BX $24.63 6.99%
DIOD $18.15 2.77%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs