Cramer's 'Mad Money' Recap: Qwest for Contract Gold

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The U.S. government is looking to award the largest telecommunications contract ever, Jim Cramer told viewers of his "Mad Money" TV show Thursday. But how do you play the sector with a $20 billion deal on the line?

AT&T (T Quote), Verizon (VZ Quote), Sprint Nextel (S Quote) and Qwest (Q Quote) are all vying for this contract, he said. And even though this contract -- reported last week by the Washington Post -- is super secret, it can still make people some mad money.

Out of the four, Cramer said he likes AT&T and Verizon but doesn't believe a $20 billion contract would "make or break" either company. The two are so gigantic, with so much going for them that he believes this contract would probably send their stocks up only 50 to 60 cents if either of the companies were to win.

On the other hand, the contract would be a big deal for Sprint, Cramer said. But although the company had a good quarter, Motorola (MOT Quote), Sprint's supplier, said Wednesday that things are not so hot.

Therefore, Sprint, AT&T and Verizon are in the "Don'tBuy camp" here, he said, which leaves Qwest. The one that makes the most sense and that people should buy here is Qwest, Cramer said. "In fact, I think you'll see a gigantic move as the permanence of Qwest ... is no longer in doubt."

Such a large contract award should move the needle on Qwest, he said, but even if Qwest doesn't win the deal, it's still likely that the company will beat its numbers. Plus, it has $400 million of free cash flow, with a "growing broadband penetration," and it is a company that can go from bad to good, Cramer said.

Even so, in the case that Qwest gets the deal and doesn't go up big, Cramer believes it's very likely the company could get acquired in the near future.