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NEW YORK (
) -- "Today, everyone was focused on earnings and I think that's terrific," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.
But he reminded viewers that there are multiple ways to make money in the markets, one of which is sticking with the colossal themes that are working, such as his "mobile Internet tsunami."
Cramer said his thesis was once again proven by today's announcement that networking giant
, which he also owns for his
Action Alerts PLUS portfolio, is buying
, whose technology is at the heart of the mobile Internet for a 20% premium. How strong are the mobile Internet stocks? He said both stocks rose on the news.
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Cramer first recommended Starent Networks on May 8, a call that's now up 80%. In fact, his "Mobile Internet Index" of 21 tech stocks is up 11.5% since its introduction just a few weeks ago on Aug 11.
According to Cramer, "Cisco gets it," and sees the huge potential of the mobile Internet and revolution in smart-phone technology. With mobile Internet traffic expected to double every year for the foreseeable future, Cramer said the question is not when
iPhone will go from 3% to 6% of the cellphone market, but rather when it will command 30% of that market.
Cramer said on the heels of the Starent deal, he likes both
( TKLC) and
as the next possible takeover targets. Both stocks also reside in his mobile index and Cramer said simply "don't wait" for the analysts and Wall Street to catch up, get in on the ground floor now.
Tech Defense Play
Cramer said another secular growth trend that's not going away is protecting the homeland, which is why he said he's featuring the very best of the homeland security stocks all week.
Tonight, he recommended
, whose technology is protecting infrastructure around the globe.
Cramer said voice, data and video surveillance and analysis is the first line of defense against terrorist attacks, and that's why he first recommended NICE Systems back on March 15, 2006. Since then, it's up a modest 20% despite the chaos in the markets, he said.
He said NICE Systems has the best technology when it comes to detecting intruders and suspicious activity at locations as diverse as the Eiffel Tower and the New Jersey Transit System. Cramer said the company has a solid edge over its competitors and a strong pipeline that will afford the company great revenues and earnings for many years.
Cramer said he also likes the company's balance sheet, with $7.77 a share in cash. The company trades at just 17.7 times its earnings, despite a 17% growth rate. That makes NICE Systems a great stock, at a great price, he said.
He said investors should buy the stock the next time the market pulls back.
Battle of Retailers
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the charts of two specialty retailers,
According to Fitzpatrick, both stocks are a buy. He said that Decker's chart shows a three-month consolidation period, with the stock now breaking out above its 200-day moving average. The chart of Under Armour is almost identical according to Fitzpatrick, with a similar consolidation period followed by recent strength.
But Cramer said while the charts may be similar, Deckers is clearly the winner, beating Under Armour hands down when it comes to the fundamentals. He said Deckers gets most of its sales from its Uggs brand of footwear sold at high-end retailers, while Under Armour products are sold practically everywhere. He also said Deckers has more international exposure, with 60% of its sales coming from overseas, while Under Armour only derives 5% of its sales from overseas.
Cramer said all in all, Under Armour just paints a mixed picture. The company's recent expansion into footwear has been shaky, with many of its products being discounted at retailers. Likewise, the company's apparel products are seeing slowing growth and increased competition.
Cramer said when it comes to price, Deckers is also the clear winner, with shares trading at just 10 times earnings compared to the 26 times multiple at Under Armour.
Off the Wall of Shame
Cramer took a little time out to update his "Wall Of Shame" list of the worst CEOs.
First, he removed Jeffrey Peek, CEO of the beleaguered
TICKER TYPE="EQUITY" SYMBOL="CIT" PRIMARY="NO"/>, after Peek today announced he's leaving the company at year's end. Cramer said "better late than never" for the CEO who took the company from $37 a share in 2004, to just 90 cents a share today.
Cramer also pardoned Strauss Zelnick, head of
, saying that Zelnick has suffered enough for his failed deal with reflow game maker
Filling the open spot, Cramer once again added Wes Edens, chairman of
, this time for the company's disastrous IPO of
Cramer said this IPO, which debuted at $15 a share, immediately tanked to $13.70 a share because Fortress structured the deal so they could cash out as public investors bought in. Cramer said this poor excuse for an IPO could ruin an already fragile IPO market.
Cramer was bullish on
United Parcel Service
He was bearish on
Select Medical Holdings
Brookdale Senior Living
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At the time of publication, Cramer was long Cisco.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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