NEW YORK (TheStreet) -- Why are shares of Crown Castle International (CCI) - Get Crown Castle International Corp Report, American Tower (AMT) - Get American Tower Corporation Report and SBA Communications (SBAC) - Get SBA Communications Corp. Class A Report higher Thursday when the S&P 500 is down roughly 0.4%? TheStreet's Jim Cramer wondered.
At first, Cramer, the portfolio manager of the Action Alerts PLUS portfolio, thought these tower companies were higher thanks to Ciena Corp. (CIEN) - Get Ciena Corporation Report beating earnings per share and revenue estimates. Revenue alone rose 11% year over year, he said during CNBC "Stop Trading" segment.
Ciena shares are up nearly 2% on the earnings results, Cramer said. But he thinks the potential merger between Dish Network (DISH) - Get DISH Network Corporation Class A Report and T-Mobile U.S. (TMUS) - Get T-Mobile US, Inc. Report is the catalyst behind the rally in tower stocks.
Cramer explained that investors may believe these companies have assets that will appeal to other buyers in the future, making the stocks more attractive.
"All of these companies are very well run," he said, adding "I'm not going to tell you not to buy them."
Switching sectors, Cramer also pointed out there is speculation about a possible merger between Wynn Resorts (WYNN) - Get Wynn Resorts, Limited (WYNN) Report and MGM Resorts International (MGM) - Get MGM Resorts International (MGM) Report. Both stocks are higher on the news.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.