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Short Rigs

We care about justice as much as we care about making money, Jim Cramer told viewers of his "Mad Money" TV show Monday, referring to the "unjust" treatment of

National Oilwell Varco



He said that there is an oil rig shortage, and National Oilwell Varco designs, constructs and manufactures oil rigs.

This stock is not levered to the price of oil, Cramer said. Instead, it's levered to the shortage in oil rigs. He said that they are currently so expensive to lease, that companies such as

Exxon Mobil


can more cheaply hire a company to build them.

That's where National Oilwell comes into play, he said. Plus, the company owns 50% of the land-based rigs market.

The stock is near $65, and Cramer believes that it should be at $77. But the stock is hated on Wall Street because "investors are ignorant about oil," he said.

They don't understand how the rig business works, and believe that everything in the oil sector should be sold if crude prices are not hitting a new high every day.

He said that the high price of oil is not priced into the stock because people don't understand that oil prices will continue to track higher, even if they're not breaking records every day.

Plus, he said that National Oilwell has "late-stage leverage" meaning that it makes its money at the end of the oil cycle.

After all the jobs have been leased and all the drilling contracted, then and only then do you need National Oilwell to provide the rigs.

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Stock of the Week

Cramer said he would "step up to the plate and put

his credibility on the line by reintroducing the "stock of the week."

This week, his pick was



, a medical device maker that focuses on spinal problems and makes gear for minimally invasive back surgery.

He called it a play on aging baby boomers with bad backs. And Cramer likes it because minimally invasive surgery is the way to go since it pleases everyone.

Patients have less pain, they go home earlier, insurers pay less money because there's less of a hospital stay and hospitals can spend less time on the patient, he said.

He said the company has a great pipeline, but told a caller that the company is one of the most speculative stocks he has ever recommended.

With that caveat in mind, he said now is the time to buy because the stock got hit after NuVasive lowered its revenue guidance in February. Shares fell from $20 to around $17.

While it seems counterintuitive to buy a stock because it lowered guidance, Cramer said that this is a broken stock, not a broken company.

Even though it lowered guidance, this small, fast-growing company still sees 41% to 46% revenue growth. He said that if a company can post double-digit growth that's good, so 40% growth is incredible.

He said that it's important to know the difference between a broken stock and a broken company. A broken company is a big, mature, steady grower, he said.

If a company like this misses its numbers or guides down, that's a sign that the company is off-track. He said that growth investors will bail out of a stock like this.

However, a broken stock is a young, fast-growing company. Cramer said that if this sort of stock guides down, people will ultimately stay with it as long as it looks as if its growth is on fire.

He reminded viewers that the "Stock of the Week" does not mean that if you buy NuVasive today that you'll have made money by Friday.

Cramer said that the purpose of stock of the week is to "highlight something that could be really big."

Avaya Can Go Higher



is making a comeback, Cramer said, adding that he "never thought he'd see the day when Avaya would be worth buying."

Why the buy rating? He said it's because this telecom company is the next part of the "Cramer Telco Reunion Tour," which also features




Applied Micro Circuits




( BKHM) and

Mindspeed Technologies



Cramer believes that the company is one of the best plays on enterprise voice over Internet protocol (VoIP) technology, calling it the "full stop provider" for all corporate VoIP needs.

Everyone on Wall Street has already crowned



the king of this market because it has the largest share in market and is doing well.

But Avaya is dirt cheap, Cramer said. Plus, analysts at Morgan Stanley published a report that said the company is running ahead of investor and analyst forecasts in terms of subscribers.

The company is gaining share in the private branch exchange (PBX) market, or private switchboard market. Cramer said this should translate into more of the VoIP market, which is where the money is.

Why won't Cisco crush this small company? Cramer pointed to the numbers, including the fact that in the last 12 months, 23% of companies that have deployed VoIP have gone with Avaya.

That figure compares with only 11% in the previous 12 months, he said.

The company has 47% gross margins, as well as cash on the books, he said. And the company just bought back nearly 20 million shares and has enough money to buy back more than 5% of its float.

There's been "a lot of chatter about the March-quarter shortfall," he said, adding that this is one reason why the stock hasn't rallied.

If you're daring, Cramer said it would be okay to pick up a little now. But he said that a prudent investor would wait until after the company reports before starting a position.

General Communicating

Ron Duncan, president and chief executive of

General Communication


, joined Cramer to discuss the Alaskan telecom company's growth potential.

Duncan told Cramer that the company's growth rate could mirror that of Alaska's booming economy, particularly with the oil industry working in the state and the potential for the gas pipeline.

He added that he sees accelerated growth for the company.

Cramer asked about the fact that the company's financials contained "certain errors" associated with a billing system changeover.

Duncan said that the error was a one-time incident because it was related exclusively to the massive billing changeover, when the company didn't pick up customer credits before the audit.

The CEO added that he believes his company will grow free cash flow at roughly $15 million a year.

To view Cramer's interview with Duncan, click here.

Mad Mail

In a letter from the "Mad Money" mailbag, a viewer asked if high gold prices would depress the jewelry market and give



a lift.

Cramer said he didn't want to lever the stock to the price of gold but likes the company for its fundamentals. He recommended letting the stock come in before picking some up.

In late January, Cramer was bullish on

Union Drilling

( UDRL), and he told a viewer who emailed him about the stock that he is still bullish.

Cramer said he would hold on until $17 or $18 and then ring the register.

Lightning Round


Cramer was bullish on

Best Buy



UnitedHealth Group



NightHawk Radiology

( NHWK),

Brocade Communications Systems



Marvell Tech



Juniper Networks








Companhia Vale do Rio Doce







Cramer was bearish on

Circuit City






NL Industries



National Beverage

( FIZ).

For more of Cramer's insights during the most recent Lightning Round, click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


At the time of publication, Cramer was long UnitedHealth Group.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on Mad Money are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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