Cramer's 'Mad Money' Recap: Verizon's Horizon Sunny

He said it's important for Verizon to raise the dividend next year. He said he expects the company will have the ability to expand margins in 2008 and 2009 and give great returns to shareholders.

Cramer called Verizon the stock for the year, saying he likes it more than AT&T (T Quote).

Piggybacking Verizon

A company that should benefit from Verizon's pin action is ADC Telecom (ADCT Quote), Cramer told viewers.

He said the company makes broadband network equipment that handles Internet, voice, data and video connections for telecom and cable industries. The upside now is that it is generating a lot of revenue from wireless sales and fiber-connectivity.

Cramer said he was previously reluctant to get behind ADC Telecom because the spending cycle for its products was erratic, but that's not true any more. In fact, now that there is a TV war ensuing between cable and telecom companies, ADC Telecom stands to gain because it is supplying both sides with equipment.

ADC Telecom recently reported a huge quarter because of high fiber-connectivity sales, he added. Plus, with its 10% long-term growth rate and a balance sheet that's "pretty good," Cramer believes it has more room to grow.

A Nose for Good Loans

Right now, banks are busy unloading mortgage-backed paper off their balance sheets, Cramer said. While some of this paper is toxic, not all of it is bad, he noted. Because not all the banks have the time to go through all the paper, some are throwing out the babies with the bath water.