WRAL Tech Wire

Good stock bet? T-K-L-C, proclaims 'Mad Money' host – and Street follows

MSNBC's Jim Cramer praises Tekelec stock Image 1 of 2 · Next Image…

On The Web

• Cramer's "Mad MoneY' report about Tekelec
• Tekelec

Site Search

MORRISVILLE, N.C. – Love or hate Jim Cramer, the wildly entertaining and often financially astute “Mad Money” host on CNBC has quite a following on Wall Street. And he is leading a run of the bulls on Tekelec stock.

“T-K-L-C,” Cramer said over and over on Monday. “They are making the gear telecoms want to buy.” On Tuesday, Tekelec (Nasdaq: TKLC) shares soared $1.08 to $16.89. On Wednesday, the rally held at a $16.90 close. Today, more good news – TKLC earnings beat the Street.

The N.C.-based maker of telephone networking gear with an emphasis on the red-hot texting and number portability markets reported a quarterly earnings report of 24 cents per share this morning. That’s good news for TKLC shareholders. Plus, its revenue forecast matches analysts’ expectations. So don’t be surprised if the stock jumps today.

Even though revenues declined 1.3 percent from a year ago, Tekelec has kept the bears away with solid sales in a slumping global economy. And as Cramer stressed over and over in his animated, voice-rising style, the TKLC crew is positioned for more growth because of its text/portability offerings.

Calling texting “the most explosive phenomenon known to man,” Cramer pointed out that Tekelec dominates that gear/software segment. How hot is texting? “My kids would rather text me than talk to me when we’re having dinner together,” he proclaimed.

Cramer picked Tekelec as the first of five high-tech stocks he is profiling this week as ones in which he sees as “small, unloved and forgotten” but with “room to run.” Tekelec is a “billion dollar” market cap company that few people have heard about with a “clear balance sheet – not debt” and is the dominant player in the world’s fastest growing wireless market – India.

“I would recommend Tekelec on India alone,” he roared, noting Tekelec is doing business with five of the top carriers in the country.

As for room to run – Tekelec’s 52-week high is $17.73, but on Tuesday and Wednesday after Cramer’s report, it spiked above $17. Its 52-week low is $10.01.

Did you buy at $10.01? Did you not panic and sell at $10.01? Either way, you must be feeling pretty good about T-K-L-C, just like Mad Money Jim.

The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…