Jim Cramer's Stop Trading! Go for Gear

He likes JDSU, MRV and others.
Author:
Publish date:

A

Lucent

(LU)

-

Alcatel

(ALA)

merger could spawn a wave of takeovers in the telecom equipment space, Jim Cramer said on

CNBC's

"Stop Trading!" segment Friday.

Cramer said possible winners could be

JDSU

(JDSU)

,

Corning

(GLW) - Get Report

,

MRV Communications

(MRVC)

,

Finisar

(FNSR) - Get Report

,

Avanex

(AVNX)

and

Mindspeed

(MSPD)

.

Cramer was very wary of

CMGI

(CMGI)

, which he called a former "house of pain."

Cramer's favorite homebuilder remains

KB Home

(KBH) - Get Report

, which he recommended buying after next week's

Fed

meeting. In the energy space, he named

Quicksilver

(KWK)

,

Devon Energy

(DVN) - Get Report

and

Houston Exploration

(THX)

as natural gas "catch-up" plays.

Cramer predicted shorts would get hurt on

Countywide Financial

(CFC)

, whose managers should be able to navigate more rate hikes.

At the time of publication, Cramer was long Countywide Financial.

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