NEW YORK (TheStreet) -- On CNBC's "Cramer's Mad Dash" segment, co-host David Faber pointed out that many investment banks are having trouble in the trading environment, especially with fixed income. Although the trading divisions have produced great profits in the past, those gains are not present today.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said that investment banks should cut back in divisions that are underperforming, and focus on areas that are outperforming.
He suggested that Goldman Sachs (GS) focus on the M&A business, since it has remained busy through the year and it requires relatively few employees to make a lot of money.
"If any place is going to reinvent itself, it's going to be Goldman," he added.Turning to Palo Alto Networks (PANW), the company beat on top and bottom line estimates, and announced a settlement with Juniper Networks (JNPR), in which Palo Alto Networks will pay a smaller-than-expected amount of $175 million to Juniper. Cramer said Palo Alto Networks "is the best security company" in its industry and the settlement figure is positive news. "The stock should be up much more," he concluded.
-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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