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If you want to own a defense contractor rooted in the future, Radvision is your stock, said Jim Cramer on his "Mad Money" TV show.

Radvision makes video-conferencing software that's currently being used by the Army in Iraq. Cramer doesn't care for most video-conferencing software stocks because the technology has historically been marketed to businesses, which don't have a great need for it.

However, the military has a big need for it, and Radvision has a big head start over its competitors, with its products already being used by the U.S. and Israeli armies.

Cramer says the market hasn't yet figured out Radvision's appeal to the military, and apparently Radvision's chairman agrees. He recently purchased 247,000 shares of his company's stock. Cramer thinks Radvision goes a "lot higher" once the market figures it out.

In response to a caller's question about Radvision's most recent quarter, which Cramer said was a disappointment, Cramer believes the quarter was a one-off event. The result is that the stock is now "too cheap."

Another caller asked about how Radvision might fare if troops were withdrawn from Iraq soon or if defense spending is cut. Cramer said Radvision's video-conferencing product is exactly the kind of thing that fits the transformation of the military as it tries to operate more cost effectively. Thus, even if defense spending is cut, Cramer said, Radvision's product "will still be purchased."

Cramer issued a 'mon back* on Cimarex Energy ( XEC - Get Report), Valero Energy ( VLO - Get Report), Halliburton ( HAL - Get Report) and EnCana ( ECA - Get Report), because it's not unrealistic to think oil could be going to $100 a barrel and natural gas to $20.

We're buying gas at "milk-cheap" prices, said Cramer, who pointed out that it's possible with a couple of cows to produce milk "with your bare hands." Gasoline, however, requires huge investments in capital, multiple stages of processing and transporting, and must be handled with extreme care.

"Cheap oil. It's a lie," said Cramer. Don't be fooled by any brief respite in gasoline or natural gas prices, he said. "Until your gas prices are at least two or three times the price of milk, I think you're still living in a world of cheap oil. You're living on the big lie."

Playing Dresser-Rand

Cramer is bullish on Dresser-Rand Group ( DRC) not only because of the "unstoppable" oil and gas sector in which it operates but also because he believes the stock is about to get "sponsorship." And, when it does, he thinks the stock is "gonna rock."

Cramer expects Dresser-Rand to get sponsorship -- i.e. investment banking recommendations -- because of its pedigree. The company is a venture capital investment of this year's hot energy investment bank, First Reserve. First Reserve has "a bunch more properties in its stable it will need to sell -- a bunch more things that are going to go IPO when the time is right. And, let me tell you, the time is most definitely right," said Cramer.

Cramer expects investment banks to fall all over themselves recommending the stock of Dresser-Rand to curry favor with First Reserve in hopes of being selected as an underwriter for the next First Reserve IPO.

"Dresser-Rand should be bought before the big promotion derby begins."

There's a Harvest in Wild Oats

Wild Oats Markets CEO Perry Odak joined Cramer as a guest by telephone on the show. Cramer asked Odak about criticisms that his company is poorly positioned to take on Whole Foods, has had disappointing unit development and has had "fluid tactical changes" to its product offering.

Odak said those criticisms were off base. "The turnaround is behind us," he said. "Wild Oats had a great second quarter. Our comps in our old stores were around 8% ... Margins improved 150 basis points quarter over quarter. We raised our guidance for the year ... on the top line and the bottom line."

Cramer asked Odak if there was room enough in the market for both Whole Foods and Wild Oats.

Odak said there was. With Wild Oats' smaller stores, "we compete in the market at two different levels. There's lots of room for both of us," he said.

Cramer summed up the interview saying although he was a "best of breed guy" which would put him in the Whole Foods camp, "I've seen this stock creep up, and ... if I could get the big ol' do-over and buy OATS at $10, I would do it."

Finally, Cramer said he had just learned Google ( GOOG - Get Report) would do a road show before its planned secondary offering. "You know I think you have to buy it ahead of the secondary. That stock's going to get to the $350 price target by the end of the year, maybe by Thanksgiving."

Lightning Round

Bullish

Cramer was bullish on Whole Foods Market ( WFMI), Martha Stewart Living Omnimedia ( MSO), Grant Prideco , Charles & Colvard ( CTHR - Get Report), El Paso , CNET Networks ( CNET - Get Report), TurboChef Technologies , Humana ( HUM - Get Report), Aetna ( AET), WellPoint ( WLP), UnitedHealth Group ( UNH - Get Report), Raytheon ( RTN - Get Report), General Dynamics ( GD - Get Report), L-3 Communications ( LLL), Grey Wolf , Marathon Oil ( MRO - Get Report), Pioneer Natural Resources ( PXD - Get Report), Valero Energy ( VLO - Get Report), Genentech , Amgen ( AMGN - Get Report), J.C. Penney , Hydril ( HYDL) and Microsoft ( MSFT - Get Report).

Bearish

Cramer was bearish on Quiksilver ( ZQK), Pacific Sunwear of California ( PSUN), Apollo Group ( APOL), Imax ( IMAX - Get Report), Usec ( USU), Open Text ( OTEX - Get Report), Calpine ( CPN), Molex ( MOLX), Time Warner ( TWX), Newpark Resources ( NR - Get Report), J.B. Hunt Transport Services ( JBHT - Get Report), Symantec ( SYMC - Get Report), Oracle ( ORCL - Get Report), Computer Associates , Movie Gallery ( MOVI), AMR ( AMR) and Geron ( GERN - Get Report).

*For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.


Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.

1. Pigs Get Slaughtered 2. It's OK to Pay the Taxes
3. Don't Buy All at Once 4. Buy Damaged Stocks
5. Diversify to Control Risk 6. Do Your Homework
7. Don't Panic 8. Buy Best-of-Breed
9. Defend Some Stocks 10. Don't Bet on Bad Stocks
11. Own Fewer Names 12. Cash Is for Winners
13. No Regrets 14. Expect Corrections
15. Know Bonds 16. Don't Subsidize Losers
17. No Room for Hope 18. Be Flexible
19. Quit When Execs Do 20. Patience Is a Virtue
21. Be a TV Critic 22. When to Wait 30 Days
23. Beware the Hype 24. Explain Your Picks
25. Find the Bull Market
Check back for more of Cramer's Rules

At the time of publication, Cramer was long Cimarex, EnCana, Halliburton and UnitedHealth Group.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." Cramer appreciates your feedback and invites you to send him an email by clicking here.