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Cramer: Don't Count This Underdog Out

It occasionally makes sense to bet on the underdog, Cramer said Thursday. The "Mad Money" host asked who could be more of an underdog than Sprint Nextel?

For years, the wireless communications company lost high-value customers, Cramer said. When Sprint finally got its house in order, AT&T announced plans to purchase T-Mobile USA from Deutsche Telekom for $39 billion. If the deal is approved by regulators, Cramer said 80 percent of the wireless business will be concentrated between AT&T and Verizon , leaving Sprint "the odd man out."

Yet Cramer continues to believe in Sprint, which he thinks has a fantastic management team. Shortly after the AT&T, T-Mobile deal was announced on March 20, Cramer spoke with Sprint CEO Dan Hesse. Like any great CEO, Cramer said Hesse "refused to play the hand he'd been dealt" and seems to be building a better business regardless of whether the AT&T, T-Mobile deal is approved.

On Wednesday, Sprint posted another net loss, adding to a long string. Sprint lost 15 cents a share while analysts were looking for a much larger loss of 22 cents, Cramer said. It also posted its first operating profit since 2007, as it keeps adding subscribers while keeping expenses in check. The Overland Park, Kan.-based company also added 1.1 million wireless subscribers in the first quarter, about twice as many as analysts had expected, as its Boost and Virgin brands proved popular.

While Cramer thinks Sprint has a lot of obstacles to overcome, he wouldn't count this underdog out. To learn more about how Sprint's business is doing, he chatted with Hesse. Watch the video to see the full conversation.

—The Associated Press contributed to this report.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

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