It's MadnessEmployers and managers are dreading the next three weeks because millions of workers everywhere will be consumed by March Madness, Cramer said. A few years ago you could only see these college basketball games on televisions at sports bars and at home, but now every game will be available live and free over the Internet, he said, and a condensed version of the games will be available for download on Apple's ( AAPL) iTunes. Companies all across the U.S. are fearful that productivity will drop off because of the games, and Cramer said, "I must admit, it seems like a cogent worry." So, that's why it makes sense to buy Websense ( WBSN). "If I was your employer and I had hired Websense, I would know what was on your computer screen," he said. "I would know that instead of working for me, you were watching a basketball game." At $58, he said that the stock is too cheap with March Madness as a catalyst.
Weather ReportCramer said that he is the "stock weatherman," and that he looks at five companies to figure out whether a market storm is brewing. His five "keys to the market" are:
Why Not Wyoming?Over the past four years natural gas drillers have descended on Wyoming, and The New York Times reported that this has resulted in roughly $65 million a month in energy taxes, Cramer said. As the revenue is pumped into schools, parks and wildlife protection, Cramer said, the state will likely be even more open to drilling, which should benefit Ultra Petroleum ( UPL), the biggest driller in Wyoming. Every Thursday is "Cramer on Demand," when he talks about the stock that RealMoney Radio listeners and TheStreet.com readers have voted to hear more about. (Weigh in on what stock Cramer should discuss next week by taking our poll at the end of this story.) Finisar ( FNSR) was the Cramer on Demand stock for the week, a company Cramer likes because he said it will make money as "phone and cable companies battle for every inch of turf." In order for phone companies to carry Internet and video signals to our homes, they will need to roll out a new fiber optic system to replace existing copper wires, he said. Finisar makes products that companies need to make this rollout happen, he said, and the stock has only recently come alive. It has done better than anyone thought it would, he said, and he still likes the stock. But at $5 he thinks it could pull back some more, so he would wait before buying Finisar.
DisconnectedA caller wanted to know if Cramer would still buy Under Armour ( UARM). Cramer said Under Armour exemplifies a classic disconnect between the company you're buying shares in and the shares themselves. "The company makes perhaps the hottest line of clothes in America ... for men, for women, for youth. They make branded products made of synthetic microfibers that you play sports in." But even though the products are great and the earnings results were decent, he said that on the conference call, "the company was as stupid as a bag of hammers." "I was revolted on the call. I thought they handled everything wrong," he said, and the stock dropped from $38 to $28. But the risk has now been taken out substantially now that we know management is capable of saying really dumb things, he said, adding that the stock may have bottomed. But he said that he wouldn't put his entire position down now, but would buy in stages. "Buying all at once is the sin of arrogance." Smith & Wesson ( SWB) reported a great quarter, but then the stock fell. Cramer told a caller this happened because after issuing great numbers, the company rounded down earnings and said that its initial report "may not be as true" as what really happened. That hurt the company's credibility, Cramer said, but long term, he likes the stock. Smith & Wesson received a blessing from the federal government to defeat lawsuits brought by municipalities trying to blame homicides on gun companies. He believes the stock could go to $8 from $5.80 over the next 18 months because of this ruling, a decline in costs and the fact that it is coming out with a line of fashion guns. And although MRV Communications ( MRVC) made a private placement, Cramer said that he still likes the stock. "MRV did something I don't like," he said. "The stock runs up and management decided to sell 19 million shares to a couple of big guys who run the system ... it seems unfair." However, it means that the company now has the capital to ride out this current cycle, he said, referring to the fact that MRV is involved in the effort made by phone companies to compete with cable companies. He said the stock could come down a bit in the near term because of the placement, and that he liked MRV "more before they did the private placement."
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