NEW YORK ( TheStreet) -- "Don't be scared by today's market action," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday after a down day on Wall Street. He said that it would be far more frightening to miss out on this exceptional rally. Cramer went on the offensive against the media, and others, who have been keeping investors away from stocks. He said high-yielding dividend stocks remain a great investment, far better than U.S. Treasury bonds. Cramer reminded viewers that earlier this year he predicted that when the International Monetary Fund stepped in to bail out Europe, a bottom would be formed. Despite the media's continued attempts to create uncertainty around Europe, the bottom was indeed formed this past July as the euro has gained steam ever since. Cramer said while the media continues to portray Europe's economy as a drag on our own, the truth is that Europe's economy is doing better than our own, and is racking up big profits for U.S. multinationals. Just look at the Dow Jones Copper Trust ( JJC), said Cramer, the metal that's most sensitive to the global economy. He said it's on fire. Then there's housing. Cramer said no matter what the data says, the press is never impressed. He said housing has been ticking up slowly for months. Cramer said that investors should set aside their fears and take advantage of bargains in great stocks.
Internet PlayIn the "Executive Decision" segment, Cramer sat down with Jeff Lunsford, chairman, president and CEO of Limelight Networks ( LLNW), a company that recently stumped him in the "Lighting Round." Lunsford explained that Limelight is a content delivery network for video and other content on the Internet. He said that a company like Netflix ( NFLX), Limelight's largest customer, secures the rights to deliver video content, then turns to Limelight to actually deliver that content to its customers. Limelight also provided video delivery for the summer Olympic games. When asked about growth over the past few years, Lunsford explained that while revenue growth flattened in 2009, Limelight's traffic continued to grow at 129% a year, as it has for the past five years. He said during 2009, the company's customers asked for price breaks and Limelight obliged, but now revenue is once again growing. Turning towards Limelight's competitors, mainly Akamai ( AKAM), Lunsford said publishers need choices and he doesn't foresee the market ever having one dominant player. He said that Limelight is the No. 2 player behind Akamai, but in the end, it's all about quality delivery of the content consumers want. Cramer said he found Limelight's story to be compelling, and recommended it on any weakness.
Punished EnoughCan a stock be punished for having too much cash on its balance sheet? You bet, said Cramer. And that was exactly the case with Comtech Telecommunications ( CMTL), a maker of satellite base stations and tracking equipment for the aerospace and defense industries. Cramer explained that Comtech had $408 million, or $14 a share, in cash on its books. Normally in this case, he said, a company has three options: buy back stock, declare a dividend or buy another company. Comtech unfortunately chose the latter, which caused it to lose a big government contract and then cancel the deal. With its share price nearly cut in half, Cramer said Comtech made a bold statement by both declaring a $1 per share annual dividend and instituting a share repurchase program for up 13% of the company's outstanding shares. Cramer said the easy way out would have been the buyback, as there are no rules requiring any follow-through. However Comtech also chose a 3.7% dividend, which Cramer declared as "the real deal" and a sign of confidence by the company. Cramer said he would not be a buyer of the stock up here, but would instead wait until the stock yields 4%. He said the outlook for Comtech, which just delivered a 13 cent a share earnings beat on revenue up 110%, should be a rosy one now that the failed takeover is behind them.