Mad Money

Stop Trading!: Buy Verizon

Verizon Wireless’ new cell-phone-service pricing plan is a chance to drive Sprint out of business, Cramer said during Stop Trading! Tuesday.

"Sprint's vulnerable,” he said. “Its customers can be taken."

Verizon Wireless, a joint venture between Verizon Communications and Vodafone, announced an unlimited-calling plan for $99 a month last week. AT&T and other rivals quickly followed with similar plans of their own, sparking fears among analysts of an ensuing price war. But Cramer wasn't worried. He called Wall Street’s concerns “much-ado-about-nothing issues,” saying he was “far less concerned” than most about the pricing plans.

Stop Trading, Listen to Cramer!

The bottom line is that CEO Ivan Seidenberg is taking it to the cable industry with Verizon’s triple-play FiOS service, Cramer said. And that’s yet another reason, in addition to a nice dividend yield, that he’s bullish on the stock.

Cramer also said he’s expecting Starbucks to return to prominence, thanks to CEO Howard Schultz’s leadership. It’s just going to take some time, much as it did for McDonald’s turnaround. He’s confident SBUX has bottomed, "it's just a question of how quickly it will come back."

But "Schultz is making all the right moves," Cramer said.

And in tech, Cramer recommended IBM, but he backed away from Google and Apple after neither reported a strong quarter. Research in Motion, he said, was the only stock of his Four Horsemen of Tech (Apple, Google, RIMM and Amazon) to deliver.

Jim's charitable trust owns McDonald's and Verizon Communications.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?