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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

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.

Stock quotes in this article: VVUS, FCX, AEM 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs