Cramer's 'Mad Money' Recap: Heelys Worth a Roll

Level 3 Minded

Although Level 3 Communications (LVLT Quote) has "horrible sounding statistics" it is a triple buy, Cramer told viewers.

Level 3 has $6.8 billion of debt, no single quarterly profits since 2003 and a coupon of $9.50 because the market doesn't trust it, he said. In addition, he said, its debt is rated triple C- by Standard & Poor's.

But despite its mountain of debt and unprofitability, the company recently spent billions in cash on a buying binge, taking over a half dozen companies, and it plans to take over more, Cramer said.

"From everything you've heard, this looks like the mother of all stinkers," he said. "But I still believe it's a buy."

Cramer reassured his viewers that he has not lost his mind, and called Level 3 "a thing of beauty." Not only is the stock loved in the bond market, but it has accelerated revenue growth in the stock market, which is really what he believes matters.

He called it "the ultimate speculative growth stock for 2007," because, as a provider of bandwidth, it serves as the "backbone" for Internet video Web sites. In addition, Cramer said the bond-market thirst for high-yield paper could drive the stock higher.

Most analysts that cover Level 3 "despise it," but this doesn't trouble Cramer because he believes the stock is going to give long-term profits to market players.

Moreover, Cramer said he likes and trusts the company's CEO, James Crowe, as he made Cramer "a fortune" with the previous company he managed, MFS Communications. As far as Cramer's concerned, Crowe is "the real deal."

Cramer welcomed Crowe onto the show and asked the exec to talk about Level 3's stock.

"Our story is improving as we speak," Crowe said. "There was a period three years ago where things were rough ... but now we think we're in a pretty good position."

In response to people who would ask how Level 3 can shell out so much on capital expenditure when its EBITDA is just a little better than all its interest expense, Crowe said that Level 3 has "a pretty good cash position" with more than $1 billion in cash, which is "far more" than the company needs internally.

"We'll use the money to invest and grow," Crowe said. "In my view we are going to have bandwidth that grows at 60%, 70%, 80% for as long as the eye can see," he continued. "The future is about the eye and the video," as everything makes a move to the Internet.

Cramer said he believes Level 3 "is the best under $10 stock" he knows.

"This one is the real deal, and Mr. Crowe is the real deal," he said.

To view Cramer's interview with Crowe, click here.