Cramer's 'Mad Money' Recap: Tapping the Vein

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"I am obsessed," Jim Cramer told "Mad Money" viewers Monday. "Every day all I tell you to buy is a different optical communications stock ... and that's because I'm always on the hunt for a bull market."

Right now, he said, "the bull resides in optical communications" because there's a worldwide pickup in carrier spending. Companies like Verizon(VZ Quote) and AT&T(T Quote) need to spend massive amounts of money to build and maintain new optical networks to deliver high-quality services to customers.

With all the consolidation in the telecom sector, it looks like the "arms race" could subside, but Cramer said that it's far from over.

"These telco companies building fiber-optic networks are not just competing with each other ... they're competing with cable companies to provide high-speed networks."

Because the carriers are spending fortunes, a lot of money should start flowing into the companies that make the components for these networks, he said.

That's where Avanex(AVNX Quote) comes in, Cramer said, yet another $2 optical stock that he believes could soar.

Cramer has recommended similar companies including JDSU(JDSU Quote), Bookham(BKHM Quote), Finisar(FNSR Quote) and MRV Communications(MRVC Quote), all of which have a stock price in the low single digits. "And every one of them is on the road to recovery," he said.

Avanex makes photonic processors for fiber-optic networks, meaning that they make the transmitters and receivers that send and decode pulses of light over fiber-optic cables, Cramer said. It also makes amplifiers that ensure the high quality of those signals, as well as a router that let you change the destination of a signal without degrading the quality.

Cramer called these products "the guts of a fiber-optic network." He also said that after JDSU started outsourcing in China, the stock got the traction to double. He believes that outsourcing will have a similar effect on Avanex.

He also warned that this "undervalued stock," which is an integral piece of this bid to build new fiber-optic networks, will be a bear in 18 months when the network is in place.