This week, CNBC’s Jim Cramer is riding the bullish wave in the market by trying to highlight some lesser known technology names that he thinks still have room to run. His first two picks Tekelec(TKLC) and Brocade Communication Systems (BRCD) have both benefited from the bounce that always seems to follow a smaller stock when Jim Cramer spends any significant amount of time focused on them on Mad Money. The same was true in after hours trading for Cadence Design Systems (CDNS) which shot up as much as 15% in after hours trading after Cramer detailed this company, but the stock has retraced to only trading up about 5% in morning trading.

“Cadence. Holy cow. Cadence Design Systems, which I have not owned since I had my hedge fund, probably in 1998. It’s been 11 years in purgatory. And we’re changing that right now…One reason, I think it’s going to go up, sell for many, buy for speculative play on the increasing complexity of our gadgets, gizmos and doo-dahs, Cadence design systems, CDNS, has what we want now, and it’s turning itself around. And more important, it looks like it has what the mutual fund managers want too. And you want to be ahead of them…No, I want you to understand, when I recommend a stock like Cadence, CDNS, something that I absolutely hated for so long, people are going to pick up and they’re going to look at it, they’re going to take notice. Don’t pay up big, but understand, cadence is back, and yes, like Gandhi 2 it’s bigger.” CNBC’s Mad Money on Wednesday, May 06, 2009

Cadence has been a dog for almost the last two years falling from the low $20-range in mid-2007 all the way down to its low of $2.42 in December. However, the company whichOckham automates hardware and software processes for semiconductor manufacturers, is starting to show signs of a turn around. The company reported earnings that were just slightly negative just over a week ago, and the loss of a dime was 2 cents better than expected. In our analysis not turning a profit is certainly a negative factor, but the earnings trends seem to be improving and analyst estimates are being revised upwards. As of the quarterly report just days ago, the company had nearly $2 per share in cash on hand, and current assets were far greater than current liabilities. The balance sheet strength will allow this company to whether the latest downturn and put them in a position to succeed in the future. It certainly doesn’t hurt that they have the market’s biggest cheerleader on their side right now.

However, we are currently only rating the company as Fairly Valued, and would only recommend it as a speculative stock. History has shown that on average, if you miss the “Cramer bounce” then you are probably better off waiting for a pull back.

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