Jim Cramer tells Deb Borchardt why he thinks Sirius remains a speculative stock.Below is a transcript of the video.

Deb Borchardt: Sirius Satellite ( SIRI) This company was given up for dead but they are survivors, they keep coming back. NASDAQ 100.

Jim Cramer: Yea, I mean this is something, one of the difficult things about being us is that you'd say "listen, why didn't you say buy it at $1." Now, the problem with that is it's not an institutional thing. I never recommend penny stocks. This one has, there's a lot of capital structure to this, preferred, it may be but a lot of debt's at a premium. This has become less of a lottery ticket and more a play on the fact that the consumer is buying new cars again and it's levered to car sales. They can get there costs down. It's still a great product. A lot of the contracts they had were involving Sirius vs. XM. That's now a monopoly. So you know, I would not tell people to avoid it. I think you can have it as a speculative stock now.

Deb Borchardt: Allright, cause that's what I was going to ask you is how do you trade something like this? It was up in a down market on this news. You know?

Jim Cramer: I think you know this is one of those situations where the dream is finally coming true but it's burned so many people no one wants to think of it. And I don't know the Howard Stern situation but I do know that the integration of these two companies has taken forever and I think that as a user of it, any user of it knows that it's still not perfect. But you integrate the companies, you cut the costs, you get more cars being built and you can justify the stock's run.

Deb Borchardt: Ok, but maybe not put that much over there.

Jim Cramer: It's just a speculative stock and why it is speculative? Because at the same time as it's gotten its capital structure together, it's owned by really bad hands. It's owned by people who are flippers and traders and penny stock guys and I don't like them as my colleagues when I own a stock. Deb Borchardt: Ok. Great. Thanks Jim.

At the time of publication, Cramer was long XXX.

More from Opinion

7 Takeaways From Google's $550-Million Investment in Alibaba Rival JD.com

7 Takeaways From Google's $550-Million Investment in Alibaba Rival JD.com

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

It's Just Not Smart For Investors to Ignore the Threat of a Trade War

To Think a Trade War's Still Just a Threat Is the Dumbest Thing on Wall Street

To Think a Trade War's Still Just a Threat Is the Dumbest Thing on Wall Street

Flashback Friday in Politics: Trade Wars, Manafort, Immigration Dominate Minds

Flashback Friday in Politics: Trade Wars, Manafort, Immigration Dominate Minds

Microsoft and Sony's Rumored Game Console Plans Bode Well for AMD

Microsoft and Sony's Rumored Game Console Plans Bode Well for AMD