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Defending Against a Downgrade

Ceradyne's Joel Moskowitz, who is also the chairman and president, says Wachovia took the cautious guidance he gave when the company reported earnings out of context. Ceradyne reported a great fourth quarter. Gross margins for the whole company were at over 40% -- record levels -- and the stock jumped to $58 from $55. That same level of growth may have been hard for Ceradyne to replicate.

But still Moskowitz is optimistic. Big numbers in the armor business and other areas will continue to grow yields. "I anticipate that will continue to creep up with margin improvement," he says.

Cramer still likes the stock. "I remain bullish," he says.

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