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Tech Specs: Starent Networks

Cramer has been recommending speculative technology stocks as a play on mutual fund managers’ renewed love for the sector. Right now the momentum is behind these stocks, and, aside of a brief pause this week, that move higher should continue.

Google , Apple , Research in Motion and Amazon – they all make sense. And Cramer likes these stocks. But he has been steering viewers toward smaller, lesser-known names because he thinks they could really break out here. So rather than recommending tech bellwethers, he’s promoting tech specs instead.

At first glance, Cramer’s Friday pick in his weeklong series on tech specs, Starent Networks , doesn’t look all that speculative. The company’s growing at a 30% clip, last quarter’s earnings beat consensus estimates by 6 cents, and Starent controls 75% to 80% of the CDMA network technology market in which it operates. Also, $5 a share of this near $19 stock is cash, and the balance sheet is debt free. And the company counts Verizon and AT&T as customers, and it plans to enter China soon. So where’s the risk?

Cramer said he’s always worried about a stock that trades at 26 times earnings. Even then, though, there’s reason to be positive. Because with this multiple investors are still paying less than one time the growth rate. That’s cheap, especially considering that meteoric growth.

The stock pulled back just about $2 this week, offering a nice entry point. Sure, you could hope for more, but remember this: Starent hit a 52-week high intraday on Tuesday. How many other stocks do you know that are hitting highs right now? So that two-buck dip is a gift. Cramer urged investors to take it.

Just to recap, Cramer’s tech specs this week were: Starent Networks, Tekelec , Brocade , Cadence and ON Semiconductor . The best way to play, he said, would be to buy a position in each to spread the risk. A couple might not work out. One might be a flat-out loser. But if one hits, it could earn enough money to cover your losses and then some.

Call Cramer: 1-800-743-CBNC

Questions for Cramer? madmoney@cnbc.com

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