Cramer's 'Mad Money' Recap: Next Week's Game Plan (Final)

A Telco Play

What's the best way to play the growth of video on the Internet? Cramer says it's with telco equipment maker Ciena (CIEN Quote).

Cramer last recommended Ciena on Dec. 12, 2008, and booked a 42% gain in the month that followed. While the stock now trades at $1 higher than his sell price from January, their are new reasons to like the stock.

According to Cramer, Ciena is all about next generation networks and the growth in popularity of video on the Web, including IPTV. Internet video is growing at 15% a year, and players like Verizon (VZ Quote) expect their IPTV subscribers to grow from 25 million in 2008 to more than 163 million by 2013.

All of this is great news for Ciena, which makes the equipment needed for Web video. As services like YouTube and Hulu grow, Ciena is the main beneficiary, he said.

Cramer said Ciena reduced operating expenses 12% last quarter and reduced its head count by 9%. Ciena is still losing money, he said, but its burn rate is slowing and its cash reserves are growing.

With Internet video on a roll, Cramer said Ciena should be coming along for the ride. He recommended buying half a position now, and investing the remainder after the company reports on June 6.

Chrysler Fallout

With General Motors (GM Quote) and rival Chrysler making massive cuts to their dealer networks, Cramer wondered where people are going to get their cars serviced.

Surely, fewer dealers will mean less competition, higher prices, and less convenience for consumers as they'll have to travel farther to find a local dealer. So who wins?

Cramer said the answer is easy, it's Monroe Muffler (MNRO Quote), which he last recommended on Aug. 19, and is up 31% since. Cramer said Monroe is the logical winner from fewer auto dealers. In fact, 37% of the dealers Chrysler is closing are in states where Monroe has a presence.

Cramer said Monroe is a terrific business. Its same-store sale were up 10% in the company's last quarter, it raised its earnings guidance and it indicated it's aggressively advertising to win over new business from the embattled dealer networks.

In addition to Monroe, Cramer said he'd also look into auto parts retailer OReilly Automotive (ORLY Quote). OReilly has the most room to grow, said Cramer, given the company's recent acquisition. He sees limited upside in competitors like AutoZone (AZO Quote) and Advance Auto Parts (AAP Quote).