Cramer: After Armor, Watch These Two Defense Stocks

This column was originally published on RealMoney on May 7 at 9:10 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Of all the areas where the analysts remain way too negative, the defense sector of the economy has to take the cake. The analysts simply refuse to believe that we won't wake up one day and say, "That's it, no more war." They act as if the Democrats would just as soon reduce our defense budget to that of Britain, or worse, Japan.

It's not going to happen. The Democrats, particularly the leading Democrat, Sen. Hillary Clinton, would do nothing to cut back spending. In fact, I believe they would increase spending on anything that protects soldiers.

That's why the Armor Holdings(AH Quote) bid is so important. It reminds us that this end of tech is going to be big for a very, very long time. BAE Systems isn't buying something for the last year or two of the Iraq war. ...