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"I am obsessed," Jim Cramer told "Mad Money" viewers Monday. "Every day all I tell you to buy is a different optical communications stock ... and that's because I'm always on the hunt for a bull market."

Right now, he said, "the bull resides in optical communications" because there's a worldwide pickup in carrier spending. Companies like Verizon ( VZ) and AT&T ( T) need to spend massive amounts of money to build and maintain new optical networks to deliver high-quality services to customers.

With all the consolidation in the telecom sector, it looks like the "arms race" could subside, but Cramer said that it's far from over.

"These telco companies building fiber-optic networks are not just competing with each other ... they're competing with cable companies to provide high-speed networks."

Because the carriers are spending fortunes, a lot of money should start flowing into the companies that make the components for these networks, he said.

That's where Avanex ( AVNX) comes in, Cramer said, yet another $2 optical stock that he believes could soar.

Cramer has recommended similar companies including JDSU ( JDSU), Bookham ( BKHM), Finisar ( FNSR) and MRV Communications ( MRVC), all of which have a stock price in the low single digits. "And every one of them is on the road to recovery," he said.

Avanex makes photonic processors for fiber-optic networks, meaning that they make the transmitters and receivers that send and decode pulses of light over fiber-optic cables, Cramer said. It also makes amplifiers that ensure the high quality of those signals, as well as a router that let you change the destination of a signal without degrading the quality.

Cramer called these products "the guts of a fiber-optic network." He also said that after JDSU started outsourcing in China, the stock got the traction to double. He believes that outsourcing will have a similar effect on Avanex.

He also warned that this "undervalued stock," which is an integral piece of this bid to build new fiber-optic networks, will be a bear in 18 months when the network is in place.

More Vanity Fare

Lots of people are turning 60 every day, and none of them wants to look their age, Cramer said. That's why he likes AngioDynamics ( ANGO), a company that has lots of products to keep people looking young.

He believes that the company's treatments for varicose veins make up the part of the business to look at, even though it also makes products for fairly serious vascular disorders.

"Treating actual problems doesn't make the big moolah. Making people look better is the better way to make a lot of money," he said.

Its varicose treatment is a minimally invasive procedure and should continue to grow at 20% a year, Cramer said, adding that Wall Street values growth above all things.

Angio makes the equipment for varicose laser therapy -- one of the most popular treatments -- and Cramer said that all kinds of doctors offer the procedure.

Treating varicose veins has become very popular and widespread, and this helps raise margins for doctors who are in a margin squeeze, he added.

He believes that the company has an "ace in the hole" drug to treat spider veins and that even though Angio trades at a premium it's a best-of-breed company that is growing its earnings at 30%.

The Price Is REIT

Education Realty Trust ( EDR) is a stock that "could explode and become one of the great growth stories out there," Cramer said, calling the real estate investment trust (REIT) cheap compared with its competitors and attractive because of its 8.3% dividend.

In another company, a dividend this big would be the stock's tombstone, he said, but REITs are legally required to kick back most of their profits to investors.

As an example of just how big this dividend is, he said that conventional wisdom holds that if you're up 7% in a year that's a decent year.

He didn't praise the company because it's cheap and because it pays a "morbidly obese dividend." He also said that it has the second-best niche in the real estate business, which is buying up apartments around college campuses, fixing them up and renting them to students.

Right now, Education Realty has focused mostly on smaller schools in less-urban areas, he said. Outside of Chapel Hill, Penn State and Ohio State, the company is concentrated in the South and in the Rust Belt.

But the money will roll in when the company moves to cities in the Northeast and the West Coast where real estate is expensive and there are a lot of students.

Cramer called it a "stupendous play on rich kids too good to live in dorms" but who want to be near campus. "They have money and inclination to rent apartments," and Cramer said that they're concentrated in those markets where Education Realty doesn't yet have a presence.

"When they move in, they should practically be coining money," Cramer said.

Plus, because it's an investment in real estate, Cramer said that it's a great hedge against inflation.

Cramer said that he loves niche companies, and that's why he welcomed to the show Jai Nagarkatti, chief executive at Sigma-Aldrich ( SIAL).

The biochemical company has posted excellent earnings, Cramer said; Nagarkatti said that's due in part because the company is well diversified.

Its products are sold in markets all around the world, and its diverse customer base includes pharmaceutical companies and academic institutions.

Plus, Nagarkatti said that the company offers a wide variety of products, chemicals and equipment.

Lightning Round

Bullish

Cramer was bullish on Amgen ( AMGN), Cephalon ( CEPH), Inco ( N), Concur Technologies ( CNQR), Yahoo! ( YHOO), Sara Lee ( SLE), I-Flow ( IFLO), Plum Creek Timber ( PCL), Las Vegas Sands ( LVS), Schering-Plough ( SGP), Bear Stearns ( BSC), Grey Wolf ( GW), Tellabs ( TLAB) and Johnson & Johnson ( JNJ).

Bearish

Cramer was bearish on Celgene ( CELG), Sirius Satellite Radio ( SIRI), Google ( GOOG), Medicines ( MDCO), Genitope ( GTOP) and OraSure Technologies ( OSUR).

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.

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At the time of publication, Cramer was long Yahoo!, Cephalon and Schering-Plough.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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