TheStreet.com TV Recap: Cramer Riffs on Telco Equipment

His top two companies here are Ciena and Telllabs.
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Jim Cramer ranked his top telecom-equipment makers on TheStreet.com TV's Wall St. Confidential Web video Monday.

"

Ciena

(CIEN) - Get Report

is No. 1 because it has some earnings," he told Gregg Greenberg, the host of Wall St. Confidential. The stock, which got an upgrade today, "is at the sweet spot of this."

Tellabs

(TLAB)

was the No. 2 pick because of its "rock-bottom valuation." Cramer said then he would focus on

JDSU

(JDSU)

. If JDSU does execute well, Cramer said he believes the stock could see 4 points to the upside, and only 1 point to the downside in case it doesn't execute.

Alcatel-Lucent

(ALU)

was Cramer's fourth pick because he believes it can't be taken over.

Before he saw the numbers for

Verizon

(VZ) - Get Report

, which reported Monday, Cramer said he had considered Ciena a takeover name.

However, now that Verizon is leading with the notion that its capital expenditure is "bigger," he believes "Ciena is at the cusp of this major spending cycle," as are JDSU, Alcatel-Lucent and Tellabs.

The last two, he said, are "really important" because they completely missed earnings and are still going higher.

On the other hand, even though

Vonage

(VG) - Get Report

could go higher because of a short squeeze, this "principal taker of Verizon is falling apart," Cramer emphasized. Also, he said he believes

Nortel

(NT)

is a "disaster."

"Forget Nortel," Cramer said. "I would rather own

Ericsson

(ERIC) - Get Report

."

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