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Scavenging for Stocks

Today, Cramer gave viewers a great play for investing after a correction: Find a company that reported a strong quarter not long before the dip and use the post-correction price as a buy-in opportunity. He’s so fond of this strategy that he’s going to reveal one company each day over the next four days that fit this criteria.

General Cable is the first pick. GC makes cables of all kinds – telco, energy, nuclear, underground electronic. It’s a boring company, Cramer admits, but it reported a phenomenal quarter about a month ago and gave good guidance, and that led to a gigantic ramp in the stock, pushing it past $53.

Cramer gives three reasons why this is a stock to buy:

1. Remember that blackout in the Northeast back in August 2003? It was caused by unpruned trees in Ohio. In response, utilities made plans to put more cable underground than ever before. After almost four years, the orders for that cable are finally coming in – and they’re going to GC. Because the competition in the underground cable market is thin, and because these orders could continue indefinitely, Cramer sees potential for price increases.

2. GC makes the fiber optic cable that telcos are using to rollout their aggressive triple-play networks. Think of GC as the arms merchant for this campaign.

3. GC is the only maker of high-level cables that satisfy the high specs necessary to meet nuclear industry regulations. As nuclear energy is adopted across the globe, this finally matters.

Keep in mind that Cramer would never recommend this stock if the raw material involved in making cable – copper – was as expensive as it was last year. This year there is more supply, so prices have dropped. Expect gross margins to fly.

General Cable peaked at well over $53 before the sell-off, and even after bouncing today, the stock is still only at $49.52. Cramer considers that a good deal. But the bottom line is that everyone is picking through the rubble, so you want to buy in before GC gets mobbed.

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Questions? Comments? madmoney@cnbc.com

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