Cramer: Juniper, Ciena Big Winners in Obama's Wireless Plan
Published: Thursday, 10 Feb 2011 | 3:05 PM ET
The White House has unveiled details of President Obama’s national wireless initiative, first outlined during his State of the Union address last month.
Among other things, the plan would make 4G wireless broadband options available to 98 percent of the United States within five years.
So which companies stand to gain the most from this initiative? On Thursday's "Stop Trading!" Jim Cramer named his picks, but Cisco was not among them.
"I'm going to talk directly about Ciena [CIEN 27.35 0.71 (+2.67%) ], because Ciena enables all of these systems to be able to talk to each other. I also want to say that Juniper plays a huge role, which segues right into the incredible dichotomy between Juniper [JNPR 43.40 3.07 (+7.61%) ] and Cisco [CSCO 18.92 -3.12 (-14.16%) ]."
So why isn't it also a play for Cisco?
"After last night's conference call, I don't know what the Cisco play is, other than to sell it and buy some other stocks in the sector," Cramer said.
Cramer also said investors shouldn't be put off by food inflation when it comes to investing in one particular supermarket — because it's a "health play" and not a "supermarket play."
"A lot of bears felt that ... every single company in the supermarket business would fall prey to it. So Safeway [SWY 21.60 0.04 (+0.19%) ] doesn't report a good quarter, Safeway's been stuck in a range for a very long time — well won't Whole Foods [WFMI 60.05 6.30 (+11.72%) ] also have a problem? No!"
"People will spend, aspirational spend, in order to be able to buy food that has the Good Housekeeping seal of Whole Foods," he said.
Likewise, Ralph Lauren [RL 126.98 1.63 (+1.3%) ] is outstanding among retailers, according to Cramer.
"Ralph Lauren is great at execution," This is like Whole Foods again. You're willing to pay up for that brand.
"Ralph Lauren, Whole Foods, Juniper. Three companies that are taking share and taking names," he said.
—The Associated Press contributed to this report. |
