Cramer knows that when the market takes a pounding, like it did these last three days, investors’ first instinct is to panic and throw in the towel. But the most important thing is to stay in the game, he said, and one of the best ways to do that is through speculation, or buying high-risk, high-reward stocks that could potentially deliver massive profits.
That’s why Cramer likes Cogent Communications , which he called “the ultimate bandwidth-shortage play.” With so many people downloading content from the Web and visiting high-quality sites, there just isn’t enough Internet bandwidth to go around. That’s where CCOI comes in.
This spec stock shouldn’t be confused with the homeland-security company Cogent , though. While Cramer likes that one, too, as it’s given investors a 14% gain since he recommended it on Oct. 16, Cogent Communications is something entirely different. This is what’s known as an alternative carrier, founded on the premise that bandwidth can be treated like a commodity: You produce it at high quantities and then undercut the competition with much lower prices.Page 1 of 3 | Next Page