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Surfs Up With the Mobile Internet Tsunami

You have to know when to pull the trigger.

When shares of Cisco Systems CSCO sold off on Nov. 11 following a second straight disappointing quarter, Cramer recommended buying networking-equipment maker Juniper Networks. The "Mad Money" host would typically suggest selling a stock like Juniper when Cisco is doing poorly, but this time was different. While Cisco’s networking business was strong, it wasn't enough to offset the other bigger parts of the company that performed poorly. Juniper, on the other hand, is one-tenth the size of Cisco and executes better. Therefore, it is small enough that strength in networking gear moves the needle in a big way.

Unlike Cisco, Juniper had good things to say at its last report on Oct. 19, offering very strong guidance for the fourth quarter. After having since made several small acquisitions, released new products and entered the enterprise market, Cramer thinks Juniper should more than double the size of its addressable market.

Currently, Juniper is benefiting from the growth in network traffic, as it produces the physical makeup of the networks themselves. It's also profiting from the mobile Internet tsunami, Cramer’s favorite secular growth trend, otherwise referred to on “Mad Money” as the smartphone revolution. As data traffic increases, so does the demand for Juniper's products.

Although shares of Juniper hit a new high in trading Tuesday, Cramer thinks it's still cheap. It's trading at 22 times next year's earnings with a 20 percent long-term growth rate. He thinks it has more room to run, but to be sure, he wanted greater insight from CEO Kevin Johnson. Watch the video to see the full interview.

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