GO
Loading...

Cramer stock pick between $10-$50

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

Looking for an affordably priced stock? Cramer hears you.

And in the $10-$50 price range, "I like GT Advanced Technologies," said Cramer. Although the stock has already made significant gains, "I think it has what it takes to keep rallying."

Largely Cramer views the stock is a play on the tech industry's growing interest in sapphire, one of the hardest substances on earth. "GT Advanced Technologies is a maker of equipment that's used to produce sapphire-based LED's," explained the "Mad Money" host. And both Apple and Samsung are using more sapphire-based innovations in their gadgets.

Close-up of ten dollar bill
Ballyscanlon | Stockbyte | Getty Images
Close-up of ten dollar bill

That alone, suggests the company may experience strong demand for its products and services for quite some time to come. But there's another catalyst that sets this stock apart from rivals and it's specific to GT Advanced Technologies.

"Apple loaned them $578 million to build a big synthetic sapphire plant in Arizona that will be able to directly supply the iPhone maker with sapphire for years to come," Cramer said.

The development triggered speculation that "Apple might change the material they use to make the touchscreen on the iPhone," Cramer said. "Right now Apple is using a hard glass made by Corning. The trouble with glass, though, is that it breaks. If Apple were to switch to sapphire, the thinking goes, they'd have a product with an unbreakable touchscreen."

Taking that theoretical scenario one step further, "If Apple were to make that switch, it would be a gigantic positive for GTAT and the stock should roar." Cramer said.

Of course, that kind of bet is purely speculative; therefore Cramer can only advocate a position in GT Advanced technologies as a spec play.

-----------------------------------------------------------------------
Read more from Mad Money with Jim Cramer
Doughnut maker could generate dough
Weakness great sign for bulls
Cramer's favorite $50-$100 stock
-----------------------------------------------------------------------

"I would only buy in small increments, using limit orders. It's a $16 and change stock that could easily trade down to $14 on no real news because it's so volatile," Cramer said. Nonetheless, if you want to harness the opportunity, Cramer added, "if the pullback continues, this stock is worth buying in increments on the way down. However, if it shoots up tomorrow, take a pass for the moment—put it on your shopping list and circle back if it comes down again."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book