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For these stocks Q4 could be ‘explosive,’ says Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Cramer thinks an area of the economy is growing white hot. And the surge is not yet reflected in shares of related companies.

"Telco spending on anything related to higher performance video through your cellphone has got to be the cyclically hottest area of tech right now," mused the Mad Money host.

And he added the Street hasn't quite caught on yet, largely because the latest results from bellwether Cisco didn't reflect the trend. The prevailing thought was, "How good could it be for rivals if it's not good for Cisco," Cramer explained.

However, Cramer thinks it is good. Very good.

Part of the Cisco commentary, Cramer says, involves the company's decision to lay-off about 4,000 people. "Can John Chambers declare 'this is the age of renewed telco spend but forgive us while we ax 4000?' No, he can't."

Therefore Cramer thinks the Street has failed to price in this potential surge in spending. And he suggests establishing new positions now, before the next earnings season when he expects to see telco purchases drive results for a slew of companies.

Kevin Winter | Getty Images

"I think there are many ways to play it," Cramer said.

"Alcatel Lucent might be one of the most exciting speculations in this sector right now," he said. (The Mad Money host detailed this stock at length on Friday September 6th. Click here to go to 'Is this $3 stock way too cheap?')

Cramer also thinks JDS Uniphase belongs on the radar. "The company might be worth dramatically more now than it is selling for as the orders come through for its equipment."

Also Cramer suggests looking at Juniper. "I suspect Juniper is having a fabulous quarter but no one has gotten behind it, yet. That's a mistake."

In addition, Cramer likes Xilinx. "Don't forget, again, how much Vodafone has to order from Xilinx to get its network up to snuff."

The only stock in the space that gives Cramer caution is Ciena and that's simply because shares have already advanced significantly. "Nonetheless, if it pulls back, I think this too, is a buy," he added.

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All told, Cramer thinks the theme could drive significant gains. And he added that the calendar sides with bulls. "The fourth quarter is historically strong for this group anyway. This year it could be explosive."

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