MAD MONEY: Why Cramer Loves Defense Stocks

Today Cramer told everyone that a place to take shelter and to look for defense against this horrible bear market (which is hurting this blogger as well) is in defense. This is not a pun but he means defense stocks. He feels that they are cheap and they are going to be expanding with the Democrats in office because of security which seems like a paradox to me. Do Democrats and war mix?

Alliant Techsystem (ATK) was his second favorite defense pick. Alliant makes bullets for defense and has a growth rate of 1.3 which is below Cramer’s level of 2. He noted that there should be volatility because of earnings on Thursday so he recommends buying some now then some afterwards.

In Lightening round, Cramer suggested:

Factset Research Systems (FDS): was a buyout target: “I think this is a natural to be snapped up by someone.”

Costco (COST): “I think that Costco is a buy. It’s my favorite retailer. It’s literally my favorite retailer in a group that everyone knows I cannot stand.” – This was also Jeff Macke’s Favorite as well.

Fist Solar (FSLR): “We had a really big run in First Solar, but after the close, they reported what was just an in-line number.” Cramer basically said it was a SELL. “We must not be pigs.” Also I must note First Solar is trying to raise another billion buy selling stock so that’s not a good sign either.