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Cramer: Mother of all speculative stocks

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

If you've got the appetite, Jim Cramer says this stock is as high-risk / high-reward as they come.

"I'm talking about Globalstar, the world's largest provider of satellite based mobile voice and data services," Cramer said.

If you're already familiar with Globalstar, Cramer knows that his bullish outlook may surprise you. "I know this is a money losing company," he said. "And I'm well aware that this stock has already rallied about 140% year to date."

Typically, Cramer would never chase a stock with those kinds of gains, especially when the company isn't profitable.

Globalstar, however, is no ordinary stock. Despite the advance, Cramer thinks the path of least resistance should be higher. "Perhaps a lot higher," he said.

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"You see Globalstar owns something else beyond satellites, something that could make this company incredibly valuable even if you believe the satellite phone business is worthless," Cramer explained.

That 'something' is electromagnetic spectrum and it sits right next to the band of spectrum that's used for WiFi. "At a time when mobile data is clogging up the current airwaves, new spectrum could be extremely valuable," Cramer noted.

Slow down! Don't dial your broker just yet. There's a glitch in the story and it's a big one.

"Currently, Globalstar's spectrum is only licensed for satellite services. They're not allowed to use it for purely terrestrial purposes like WiFi," Cramer explained.

Cramer, however, thinks there's good reason to believe that will change.

"Globalstar has petitioned the FCC for permission to use their spectrum for terrestrial low power service such as WiFi hot spots. Currently the request is under review, but because the request hasn't raised any serious opposition, I think it's extremely likely that they get a favorable ruling."

If Cramer is right, and Globalstar gets a favorable ruling, "the company's spectrum alone would be worth several billion dollars," Cramer noted. That alone should buoy shares, but Cramer can foresee a number of potential scenarios subsequently developing, all of which, he thinks would unlock even more value.

1. "I can see Globalstar partnering with wireless carriers like AT&T and Verizon, allowing the carriers to use their WiFi channel as a substitute for mobile service".

2. "Globalstar could also make deals with the cable companies to install their routers in various cities and offer customers guaranteed access to a high-speed private WiFi network that would be citywide, and then perhaps nationwide.

3. "They could strike a deal directly with the handset makers; all you'd need is an app to use Globalstar's theoretical network on your phone. They already do this with Apple for their satellite business."

4. "In the wave of a positive FCC decision, I could see Globalstar catching a bid from one of the big internet titans. We know Google recently revealed a plan to launch 180 low-earth orbit satellites that will take five years to deploy. Globalstar could give them a head start along with some terrific spectrum. "

All told, despite the remarkable gains Cramer believes the path of least resistance should be higher.

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"If the FCC decides in Globalstar's favor, I think this stock could go from $4 to $7 over the course of the next year, for a potential 75% gain," Cramer said.

However, as noted above, this stock is a speculative buy. "There are still a lot of ways this story could go wrong; maybe the company can't execute or maybe the FCC throws Globalstar a curveball. When you're dealing with regulators there's always a chance that things could go wrong, but I wouldn't even be mentioning Globalstar if I didn't believe there's a very high probability that the company will get its way."

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