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Friday, October 13, 2006

October 13th - NICE RVBD

Cramer once again has recommended NICE Systems Ltd. (NICE) as a play on terrorist defense.

Closing Price: $30.93
After Hours Price: $32.01
Percent Increase: 3.5%
Trades on NASDAQ
Sector: Technology
Short %: 0.14%
Days to Cover: 0.4
% Held By Insiders: 3.75%
% Held By Institutions: 65.60%

Here is what happened last time Cramer recommended NICE on August 18th:
Pre-Market Open: $26.75
Pre-Market High: $26.76
Pre-Market Close: $26.55
Pre-Market Volume: 3694 Shares
After Hours High Friday Night: $27.15
Regular Hours Open: $26.83
Initial Spike Price: $27.00 ** Psychological price point not passed yet again.
Time of Spike: 9:33am
Initial Drop in Price from Regular Hours High: down $0.35 to $26.65
Time of Initial Drop: 9:45am
High for the Day: $27.00
Low for the Day: $26.36
Closing Price: $26.79, up $0.32 from Friday's close

Obviously the stock is up from where Cramer recommended it last time (which is the first time I have seen that when Cramer recommends a stock for a second time) but did drop off its opening high shortly after the opening bell. The price action tonight has pushed the stock to a new 52-week high after the stock was down over 2% during regular trading today. Since we have gone through $32 after hours here, but only just, this will be an important number to watch much like last time where the stock did not break $27 the next day. If it goes much higher than $32, then I would probably let it run in fear that $32 could be the floor, otherwise if $32 isn't broken early then it could fall like last time.

Next Cramer picked another recent IPO that was mentioned in a recent lightening round Riverbed Technology, Inc. (RVBD)

Closing Price: $18.05
After Hours Price: $20.60
Percent Increase: 14.1%
Trades on NASDAQ
Sector: Technology
Short %: N/A
Days to Cover: N/A
% Held By Insiders: N/A
% Held By Institutions: N/A

RVBD came public on September 21st and is trading on average near 1 million shares daily. Cramer said he was looking for the next DIVX which went up considerably for days. With the way DIVX went up I'm not going to touch this with a 20 foot poll, not to mention from what I heard brokers didn't have shares of DIVX to short so the same situation could happen here due to the newness of the stock. In fact, if this is anything like DIVX (and the after hours increase indicates it might be) it may be worth looking to BUY during the pre-market on Monday when the price will likely dip like DIVX did where it traded at $19.73 before going to $21.84 during the regular trading day.

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