Mad Money 9 September 2005

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Jim Cramer’s Mad Money Recap 9/9/2005

Jim Cramer suggested a defense play on Radvision Ltd (NASDAQ NM: RVSN).

RADVISION Ltd. is the defense industry’s leading provider of high quality, scalable and easy to use products and technologies for videoconferencing.

RVSN was trading at $11.93 as of the market close of 9/9/2005

Cramer made a good analogy about oil I thought. He compared a gallon of oil to a gallon of milk. He made the case for oil still being really cheap and about the same price as a gallon of milk.

His reasoning behind this is milk is a domestic product produced by farmers in the US. Where as crude oil, is extracted from harsh terrain, usually in other countries, oil companies incur huge costs in drilling and production, it then must be pipelined or sent over by tanker, lastly it must be refined and transported again to your local gas stations.

We have been spoiled in the past with cheap crude but those days or over. China and India are now consuming large amounts of crude and the world supply is really tight. The problem is also compounded with the fact that we have not built any new refineries in US for 30 years. Hello politicians!

I personally hope the pain that is felt at the pumps will translate into companies developing alternative means of power. If we continue to rely on countries in the middle east to provide us with petroleum we are really asking for trouble.

For some petroleum pure plays check out these: