Cramer's 'Mad Money' Recap: Ionatron's High-Energy Promise

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The "ultimate speculative stock" for a stock-picking contest like CNBC's Million Dollar Portfolio Challenge is Ionatron (IOTN Quote), Jim Cramer told viewers of his "Mad Money" TV show Friday.

Cramer, who got the stock idea from a Stockpickr.com recommendation, believes Ionatron isn't just a good pick for the game, it could also work if people need to fill a speculation hole in their portfolios .

Ionatron makes directed-energy weapons, which, Cramer said, translates into lasers. The company uses a technology called laser-induced plasma channel (LIPC), and its lasers come in lethal and non-lethal form.

Cramer likes Ionatron as a speculative play because the company could soon win a huge contract from the U.S. military for its IED Neutralizer, an LIPC device that is used to safely detonate improvised explosive devices, or IEDs. The military has been spending billions on mine-resistant vehicles, which is why Cramer has advised buying Spartan Motors (SPAR Quote) in the past.

Last May Ionatron fell from $14 to $5 because it didn't get a military contract. The stock has been sitting at $5 ever since, Cramer said. Now the company is back, and he believes it's possible that Ionatron is going to get a military deal.

"I'm speculating that Ionatron will get the contract this time," he said. "If it gets the contract, I have little doubt that it will move the needle and the shorts will get squeezed."

The stock is "risky," but for those people who are participating in stock-picking contests CNBC's Portfolio Challenge, the downside doesn't matter as much, which makes it perfect for the game, Cramer said. And, he said, it could be even better with real money for a speculative pick.