American Science and Engineering (ASEI) creates technology to scan cargo and cars for bombs. Mark Travis, chief investment officer of Intrepid Capital Funds, said the company has a clean balance and would be a great acquisition for larger defense contractor. 'With the increase in concerns about terrorism the demand for security measures has risen,' said Travis. 'American Science and Engineering is a leader in the space and even supplied the technology to protect the Pope.' Shares of American Science and Engineering are down 30% so far this year, primarily due to a big move down following a third quarter loss in February.

More from Video

Video: How to Select Mutual Funds in Your 401(k)

Video: How to Select Mutual Funds in Your 401(k)

Racing Legend Mario Andretti Has Great Advice for Retirees

Racing Legend Mario Andretti Has Great Advice for Retirees

Arianna Huffington on Burnout, Tech-Life Balance and Why Amazon's CEO Agrees

Arianna Huffington on Burnout, Tech-Life Balance and Why Amazon's CEO Agrees

Nucor Is Waiting to See if Steel Tariffs Will Be Implemented, Jim Cramer Says

Nucor Is Waiting to See if Steel Tariffs Will Be Implemented, Jim Cramer Says

Jim Cramer: Will Apple or Amazon Become the World's First Trillion Dollar Stock?

Jim Cramer: Will Apple or Amazon Become the World's First Trillion Dollar Stock?