Selling in Verizon and AT&T Is Way Overdone

Oh come on, sellers of Verizon (VZ - commentary - Cramer's Take) and AT&T (T - commentary - Cramer's Take). Tell me, are you really selling common stock, or are you just basket sellers? Because that dividend and the strength of the franchises make sales here seem a little extreme.

We have lots of extremes happening again, just as we had in November and October. They seem almost forced.

I am using these two as my "control," because even if their businesses are deteriorating -- as I am sure they are -- they were two of the best bounceback stocks out there, and I believe they will be again.

What do you do? I think you buy these stocks on the way down in increments that allow you a lot of room.

AT&T bottomed at $21 on Oct. 10. It then shot up to $30.

Verizon bottomed at $24 on Oct. 10. Then it shot up to $35.

These are the two stocks that present, at least to me, the least risk and the most reward if the retest scenario takes hold.

At the time of publication, Cramer had no positions in the stocks mentioned.

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Know what you own: Cramer mentions AT&T. Other companies in the telecom services industry include BCE (BCE - commentary - Cramer's Take), Qwest (Q - commentary - Cramer's Take), Windstream (WIN - commentary - Cramer's Take), Centurytel (CTL - commentary - Cramer's Take) and Frontier Communications (FTR - commentary - Cramer's Take).

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