Cramer Bullish On These High-Risk, High-Reward Stocks: Ciena (CIEN), Tellabs (TLAB) And Skyworks Solutions (SWKS)
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On Friday's Mad Money, Jim Cramer said "a lot of money can be made on speculating on the most beaten up, beaten down and certainly out of it tech names. The ones with the most room to roar and comeback, now that the tech market has got buyers blessings."
Jim Cramer has 3 single digit, high-risk, high-reward plays: Ciena (Nasdaq: CIEN), Tellabs (Nasdaq: TLAB) and on Jim Cramer favorite, Skyworks Solutions (Nasdaq: SWKS).
Cramer is a fan of Ciena. Ciena was knocked down 20% last week after a lackluster earnings report. Ciena is down over $30 during the past year, as major clients, such as AT&T (NYSE: T) have drastically cut spending. Cramer thinks these spending cuts by clients is already factored into the stock, and perhaps a new contract in '09 could boost shares of Ciena. Additionally, Ciena's $3 a share in cash, limits its downside.
Next, on Cramer's list is Tellabs. Like Ciena, Tellabs is another bandwidth play that died with the drop in telco spending. Tellabs has $3.30 in cash, no debt, so Jim questions what is wrong with this picture as the stock is trading just above $4.00. He says Tellabs should thrive again, when the telcos start spending in late 2009. Additionally, Tellabs had a good analyst day on November 14th, where management announced a new contract with British Telecom and didn't cut Q4 guidance, rather reiterated its guidance, but the stock still fell 2% the following day.
Cramer said, he thinks Tellabs is as close to having no downside as he has ever seen because of the cash on the balance sheet, trading near cash value.
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Cramer's last single digit, high-risk, high-reward play is Skyworks Solutions (Nasdaq: SWKS). Skyworks is a play on the growth of smart phones. Skyworks Solutions manufactures the power amplifiers used in 2G or 3G phones (such as the iPhone) that speed up wireless connections. Skyworks stock has fallen after the company cut guidance and analyst estimates were reduced from 23 cents to 16 cents, but Cramer thinks the bad news is already priced into SWKS.
Cramer said smartphones are regaining steam and he likes that Skyworks is diversifying from just the handset business. Cramer said don't bet against Skyworks and there will likely be another successful turnaround with this company.
Cramer thinks these are all great stocks that could roar back, but more importantly, have very little downside because of the cash on their books.
Jim Cramer has 3 single digit, high-risk, high-reward plays: Ciena (Nasdaq: CIEN), Tellabs (Nasdaq: TLAB) and on Jim Cramer favorite, Skyworks Solutions (Nasdaq: SWKS).
Cramer is a fan of Ciena. Ciena was knocked down 20% last week after a lackluster earnings report. Ciena is down over $30 during the past year, as major clients, such as AT&T (NYSE: T) have drastically cut spending. Cramer thinks these spending cuts by clients is already factored into the stock, and perhaps a new contract in '09 could boost shares of Ciena. Additionally, Ciena's $3 a share in cash, limits its downside.
Next, on Cramer's list is Tellabs. Like Ciena, Tellabs is another bandwidth play that died with the drop in telco spending. Tellabs has $3.30 in cash, no debt, so Jim questions what is wrong with this picture as the stock is trading just above $4.00. He says Tellabs should thrive again, when the telcos start spending in late 2009. Additionally, Tellabs had a good analyst day on November 14th, where management announced a new contract with British Telecom and didn't cut Q4 guidance, rather reiterated its guidance, but the stock still fell 2% the following day.
Cramer said, he thinks Tellabs is as close to having no downside as he has ever seen because of the cash on the balance sheet, trading near cash value.
Subscribe to EasyStockAlerts.com & Get real-time e-mail alerts when news hits your stocks!
Cramer's last single digit, high-risk, high-reward play is Skyworks Solutions (Nasdaq: SWKS). Skyworks is a play on the growth of smart phones. Skyworks Solutions manufactures the power amplifiers used in 2G or 3G phones (such as the iPhone) that speed up wireless connections. Skyworks stock has fallen after the company cut guidance and analyst estimates were reduced from 23 cents to 16 cents, but Cramer thinks the bad news is already priced into SWKS.
Cramer said smartphones are regaining steam and he likes that Skyworks is diversifying from just the handset business. Cramer said don't bet against Skyworks and there will likely be another successful turnaround with this company.
Cramer thinks these are all great stocks that could roar back, but more importantly, have very little downside because of the cash on their books.
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