[Beginning of Cramer's verbatim comments for this segment...]

Jim:          On Monday night’s Lightning Round, I got hit with two questions that I could not answer…Man, I drowned myself… that is right… this chump was stumped not once, but twice… with a pair of stocks that I was not familiar with… Neil from New York asked about DuPont Fabros Technology, Inc. (DFT)… I thought that he was talking about Fabros my rolling iron man… Andrew from New York hit me NVE Corp. (NVEC)…

When you stump Cramer… in addition to sending him home to mope on his dirty linoleum floor with the requisite bottle of cheap scotch… he also does back and does some research… and then he gives you answers… which I want to do for both of these New Yorkers right now...

First, DuPont Fabros Technology… which is kind of really, in a similar vein of the holy Roman empire… it is neither related to DuPont the chemical company, nor is it a tech stock… was is DFT?… it is a real estate investment trust, a REIT… one that owns data center properties and leases them out to companies like Google, Microsoft and Facebook… as far as tiny REIT’s that I am not familiar with go… it looks like DFT is pretty good… 97% of its business is from investment grade clients with triple net leases… they are going to stay… the company leasing the property pays the rent, taxes, insurance, and maintenance to DFT.

This one hit a rough patch in late 2008... it had trouble with some financing, which caused the company to stop paying dividends… but since then, the stock has recovered… and the credit market has eased up… allowing DFT to push back its debt maturities to 2011... the fundamental story could be interesting…we know that the technology companies will keep needing data centers... this could turn out to be an ultra stealth mobile internet play… but I need to get more clarity on the dividend situation before I can recommend it… I would rather own a nice commercial real estate and trust like Brandywine Realty Trust (BDN)… the stock is coming down… all of the REIT’s are coming down here… I know the CEO is a close watcher of the show… if you, meaning you home gamers, are really interested and send us a lot of email on it… then we will follow up on what I think is a very small cap situation.

How about the NVE Corp. (NVEC)?… This one I should have known… this one is really interesting… this is a tiny little tech company… that is why I tend not to know them… this is $265m market cap… it got dinged for over 3 points, down here it is interesting… it is fascinating… but it is extremely speculative… NVEC is a nano tech with a patented but unproven memory chip technology called EM-ram… their main technology may be unproven… but it is a real company… clean balance sheet, no debt, $41m in cash… since 2004, NVEC has been transitioning from a company that mainly got its money from R&D contracts… to one with real product sales… last quarter, 20% of its revenue came from R&D, 80% came from selling real things… electronic sensors, couplers, other tiny electronic devices.

Recently it has been an ultra fast grower… sales up 41%… net income up 54%… but… it trades at 22 times earnings… now that is not expensive when you consider that the long term growth rate is around 25%… a lot of hedge funds would pay up to 24% for that… but, it is really darn interesting… let’s just call it incredibly speculative… but it does have game changing technology if it is ever proven… not for the faint of heart… have a big appetite for risk… NVEC do your homework… could be for you… limit orders… small increments… dealing with a really small stock.

Now, I want to follow up on something that we talked about
on Tuesday’s show…
...and I am very proud of this… okay… we talked about the IPO of battery maker A123Systems (AONE)... or AONE… this one priced at $13.50 a share… that is where I told you that it would be very reasonable and for you to get in… and to get in your maximum…

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Bottom Line:     So if you got in on the IPO… the price was right.. it is now up 50% to $20.29 in the first day of trading… but I think that you would be a pig not to ring the register… I said that you should pay no more than $19 for A123... now it is above that… I want you to take A123Systems (AONE) off the table… do not be greedy… it is time to ring the register and bring home the AONE.

 

[verbatim recap]

[end of segment]

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