Cramer: Four Stocks Off Verizon's Quarter

This column was originally published on RealMoney on April 30 at 9:10 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Ciena(CIEN Quote - Cramer on CIEN - Stock Picks), Corning(GLW Quote - Cramer on GLW - Stock Picks), JDSU(JDSU Quote - Cramer on JDSU - Stock Picks), even Tellabs(TLAB Quote - Cramer on TLAB - Stock Picks): That's the way to play this Verizon(VZ Quote - Cramer on VZ - Stock Picks) quarter, where spending is going to accelerate on optical businesses.

It's been ages since we had a spending cycle worth noting in telco (vs. the unbelievably strong aerospace cycle; witness United Tech(UTX Quote - Cramer on UTX - Stock Picks), Honeywell(HON Quote - Cramer on HON - Stock Picks) and now B/E Aerospace(BEAV Quote - Cramer on BEAV - Stock Picks) this morning). When we had the last one, it was fantastic for Ciena, JDSU, Alcatel, Lucent (pre-combination), Nortel(NT Quote - Cramer on NT - Stock Picks) and Corning.

Corning signaled the strength last week, even though it seemed that people focused far more on LCD screens.

This morning, though, Verizon makes it very clear that spending's going to be huge for these businesses.

I don't want to overthink this. The stocks in this sector aren't expensive if Verizon is going to accelerate spending. Just check the upgrade this morning of Ciena by Weisel. It again signals that this is the moment.

Of these, JDSU is the most problematic. Its history of terrible execution could blunt the cycle. I have far more faith in Tellabs which already had its terrible quarter. I don't trust Alcatel-Lucent(ALU Quote - Cramer on ALU - Stock Picks) at all after Patricia Russo got the nod to run the company, but this Verizon story this morning explains the strength after that miserable quarter.

Let me just add that I hate this group -- if only because if Verizon hiccups, you are dead. We aren't seeing this kind of spending from either Qwest(Q Quote - Cramer on Q - Stock Picks) or, of course and much more significantly, AT&T(T Quote - Cramer on T - Stock Picks). But given that Verizon just reported, the window is open for some capital gains off this very big cycle.

Random musings: Speaking of defense and aerospace, you have got to check out the discussion of the Boeing suppliers portfolio on Stockpickr. I tell you, every day this site becomes a more value-added investing tool.