Cramer's 'Mad Money' Recap: Tide's Right at I-Flow
"Sometimes investors really just jump the gun," Cramer said, citing the end of the tech bubble when everyone piled into high-speed optical network stocks.
Nearly every one of those companies neared $100 and then plummeted near zero, he said.
"But that doesn't mean that the people who were overly enthusiastic were wrong," Cramer said. "They just had awful timing."In this game, it's better to have great timing than to be right." He believes that the time is finally right for all those high-speed optical network plays, including his favorites Bookham (BKHM), JDS Uniphase (JDSU) and Ciena (CIEN). Cramer said he wanted to add MRV Communications (MRVC) to the list, despite the fact that the stock plummeted from $91 to $3 after the tech bubble burst. Over 70% of MRV's sales come from Europe, he said. But the real reason he likes the company is because of the numbers. He said that estimates for the stock are way too low. Gross margins were at 0% in the third quarter, but jumped to 20% in the fourth. MRV Communications said it could see 30% sequential sales growth in its optical business in the first quarter of this year, Cramer added. FTTP sales, meaning the fiber optic network used in homes in business, have been strong, he said, and he believes they will be stronger going forward. And finally, Cramer said that MRV Communications is a momentum play. It started the year at $2 and is up 60%. "If you get momentum sickness, I think you should avoid this one," he said.
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