'Mad Money' Spotlight: Ciena

Hulu's nefarious mantra -- "an evil plot to destroy the world" -- should be a siren call to investors, so says Jim Cramer. And, indeed, the Internet video platform industry got a big boost after last Friday's "Mad Money" segment spotlighted a speculative play on Ciena(CIEN Quote), a web-video equipment developer.

Ciena rallied this morning to reach $10.39 at midday, up over 8 percent at 80 cents since Friday's close. It was one of the most actively traded small caps in pre-market action.

News spread last week that Hulu, an online web television consortium, was seen by 42 million in March according to comScore. Nielson Online disputed the count, saying only 8.9 million people visited during that period. Nonetheless, Cramer said the web video market is growing at a 15 percent clip per annum. A war between internet protocol providers like Verizon(VZ Quote) and AT&T(T Quote) -- as well as a 45 percent annual growth rate in IPTV -- will stand to benefit Ciena.

Unwilling to write off the tech rally, Cramer insisted that tech will broaden beyond the four horseman -- Apple(AAPL Quote), Google(GOOG Quote), RIM(RIMM Quote), and Amazon(AMZN Quote) -- to include smaller players like Ciena.

Cramer, who talked up Ciena in December, was further encouraged by the Linthicum, Md.-based corporation's move to become a "real company." It shrunk its workforce by 9 percent and decreased operating expenses by 12 percent during the quarter.

Still, JMP Securities downgraded the stock on May 12, saying that key Ciena customers were cutting capital expenses, creating a tougher sales environment. Analysts are estimating an average 8 cent per share earnings drop this quarter. Assessments range from a high loss of 20 cents and to loss low of 2 cents. Though Ciena is still losing money, Cramer insisted that the company's burn rate is ebbing.

Cramer suggested a half-position buy, while waiting to invest the rest after the company's earnings report. That earnings announcement will come before the market open on June 4.