RealMoney Radio: Sticking With Ciena

Cramer says demand will continue to give the company pricing power.
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The first

"RealMoney" radio show listener to call in on Friday asked Jim Cramer if now is the time to sell

Ciena

(CIEN) - Get Report

.

He told Cramer that he bought the stock near its five-year high above $5, and now it has fallen all the way to $3.80.

Cramer said that the company makes the platforms necessary to have video-on-demand, and that the company's management said that there is still strong demand for its fiber-switching products.

Where there is demand, there is pricing power, he said, adding that he would not give up on Ciena.

But the stock has had a huge run higher, gaining as much as 140% year-on-year, he said, and now it's up 30% year-to-date and 80% on the year. So Cramer said not to buy more of this stock all at once because it could still fall.

Cramer told a listener that

CSX

(CSX) - Get Report

is one of best rails, and that he also likes

Union Pacific

(UNP) - Get Report

and

Norfolk Southern

(NSC) - Get Report

.

The salient thing about CSX is that it's up 40% year-to-date, which will bring out some profit-takers, he said. They've made a lot of money, the market is going down and they'll decide to lock in gains.

Even though

Nabors

(NBR) - Get Report

is being sold aggressively, Cramer told a listener that the stock is bottoming and that the company reported a beautiful quarter.

It's getting hit because the entire group has been very hot, and because of its exposure to natural gas, he said. Natural gas hit an 11-month low, which is typical in May because it's a winter product. Even so, that helped accelerate selling, he said.

As for

Aqua America

(WTR) - Get Report

, Cramer said to stay away from this stock. The company missed its numbers, and he sold it for a loss for his charitable trust portfolio

Action Alerts PLUS.

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At the time of publication, Cramer was long Nabors.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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