NEW YORK ( TheStreet) -- "Don't let the last decade of underperformance fool you," Jim Cramer told the views of his "Mad Money"TV show Monday. He said when the market rallies on stuff we already know, that's a very bullish sign. Cramer said on a day when the market was poised for steep declines in the early morning hours, he was delighted to see individual stocks, many of the one's he's been recommending for weeks, rallying despite the seemingly bearish economic news out of Portugal. What was interesting, he noted, was why they were rallying. It's been known for weeks now that eventually Verizon ( VZ) would be selling Apple's ( AAPL) iPhone. But despite the stock of Apple, a stock which Cramer owns for his charitable trust,
Backbone of the InternetIn the "Executive Decision" segment, Cramer sat down with Gary Smith, president and CEO of Ciena ( CIEN), a stock that's up 305% since Cramer first recommended it on Decl 12, 2008. Cramer maintains a $30 price target on Ciena, which makes high capacity optical switching products for the backbone of the Internet. Smith said the mobile Internet tsunami is still in it's early innings, driven by greater geographic diversity on the Internet and greater applications with more requirements. He said what's different now versus the first Internet boom in the late 1990s is that now the costs have fallen to where businesses are making real money online. Ciena is at the core of high capacity transport, said Smith. When asked about Ciena's acquisition of assets from Nortel ( NT), Smith said that Nortel had great technology in high capacity networks and great people, which made the acquisition extremely valuable. He said Ciena now has global scale and reach and is a leader in every space in which they compete. Turning to the latest trends, Smith said Ciena has world leading technology in the 100G, or 100 gigabit per second, optical space, and with cloud computing continuing to grow, the need for more bandwidth, like 100G, will only continue. Cramer continued his recommendation of Ciena and maintained his $30 price target on the stock.
Next Takeover TargetsOn the heels of Qualcomm's ( QCOM) recent acquisition of Atheros Communications ( ATHR), Cramer offered up seven speculative networking stocks that could be the next takeover target. He said each of these names is great on their own merits, as well as a potential acquisition target. 1. Acme Packet ( APKT) - This stock is up 84% since Cramer first got behind it on Aug. 9. Acme has a 60% market share and trades at 55 times earnings with a 32% growth rate. 2. Netgear ( NTGR) - This stock is up 32% since Cramer's Oct. 8 recommendation. The home networking equipment maker trades at 17 times earnings with a 17.5% growth rate. 3. Cirrus Logic ( CRUS) - A stock that's been on a roller coaster, but Cramer said it's trading at just 12 times earnings with 20% growth and a bad quarter just behind them. He said Cirrus is worth a look. 4. Motricity ( MOTR) - This stock has pulled back 10 points from its post-IPO high and Cramer said this web portal company is also cheap with a 25% long term growth rate. 5. Akamai ( AKAM) - This stock is up 81% since Cramer mentioned it on Jan. 20 of last year and trades at just 29 times earnings with a 17% growth rate. 6. Nvidia ( NVDA) - Cramer said he'd let this stock come in a bit before buying, but he still likes the company, which is up 89% and trades at 28 times earnings with a 14% growth rate. 7. ARM Holdings ( ARMH) - Cramer said the 200% gain in this stock since Oct. 16, 2009 may just be the beginning for this mobile chip designer that's in everything from smart phones to the iPad. ARM is expansive, trading at 50 times earnings with only a 20% growth rate, but Cramer said the stock is still far too small given the company's role in the mobile Internet .