Cramer also came out on CNBC’s MAD MONEY with some speculative stocks in telecom, even though his main focus in telecom is being defensive right now. He said that the telecom expense expansions are back on track. As far as who will get the growth Cramer’s got two plays here:
Tellabs (TLAB) is the spending play for AT&T (T) U-verse roll-out. He likes their "last mile technology" for broadband and terminals.
Ciena (CIEN) is the spending play for Verizon’s (VZ) FiOS roll-out.
These stocks have histories and Cramer noted that you can’t stay too long in the recoveries. Cramer also recommended taking profits on these as the contracts roll in. Cramer even said that Alcatel-Lucent (ALU) may need to make an acquisition after their horrible quarter, and either stock would fit the bill. Before getting too excited about these picks as fresh, Cramer did come out with these just yesterday already and has been making positive comments on them in recent days. Regardless of whatever these stocks do, please be aware that under no circumstances are these "defensive" portfolio plays. Most of these telecom equipment and optic roll-out plays have been boom and bust and back again.
Jon C. Ogg
May 1, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers
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