Even after the Dow’s 400-point rebound on Monday, Cramer said during Mad Money, this market is still oversold. That means stocks with strong secular growth stories can still be bought.
In moments like these, Cramer returns to the themes that transcend the market’s short-term volatility and promise growth for the long term. Like the mobile Internet. And there’s one group of stocks within that industry that’s been held back unnecessarily, he said, and they’re worth a serious look by any investor.
He was talking about the cellular-tower companies, his favorite being American Tower . Apparently, Verizon Communications’ chief financial officer in March said that most of the antennas needed for the company’s initial fourth-generation network had already been deployed. So no new antennas meant no new growth for the companies that lease them. The CFO’s comments knocked AMT from its highs, Cramer said, and the stock’s been lower ever since.
But get this: Verizon’s 4G deployments account for only 8% of AMT’s revenues, and most of the growth is still coming from 3G antennas. So the stock shouldn’t have taken that hit.
At the same time, AMT reported a strong quarter on May 4 that got lost in the mix, as Europe’s debt woes unfolded throughout the week. Lower taxes helped the company beat earnings estimates by 6 cents a share, though leasing activity was strong and the AMT expects its acquisition of India’s Essar to be additive to earnings this year.
Cramer wanted to know more about what’s in store for the company, so he invited Chairman and CEO James Taiclet. Watch the video for the full interview.
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