I just wish they would take into account the micro evidence. Companies like JDS Uniphase (JDSU) or ADC Telecom (ADCT) or Tellabs (TLAB) or RF Micro Devices (RFMD) or Skyworks (SWKS), they are all too cheap. They are languishing. I think the H-P buy of 3Com is a wakeup call to all of the inexpensive tech stocks that are languishing -- your time of non-independence will soon be upon you.

I would be thinking of the plays that are necessary to expand in this business, so I would look at Ciena (CIEN), Tellabs (TLAB), ADC Telecommunications (ADCT) and Qualcomm (QCOM) -- although everyone keeps chattering endlessly about the problems in China for Qualcomm, problems that are short-term involving the delay of systems being built.

On a related note, Cramer said the mobile Internet “tsunami” is a trend big enough to carry Apple (AAPL), Research in Motion (RIMM) and Palm (PALM). The demand is so “incredible” that it’s carrying related plays like Tellabs (TLAB) and SanDisk (SNDK) as well. “This is the most powerful trend in tech,” Cramer said.

I like the mobile Internet plays on the move, notably RF Micro (RFMD) and Triquint (TQNT), ADC Telecom (ADCT), Tellabs (TLAB), ON Semiconductor (ONNN) and Cypress (CY). They are all cheap on a multiyear-move basis. On the other hand, I don't know how people can buy Level 3 Communications (LVLT) given that balance sheet. That's not a mobile Internet play.

Think about what's moved this week: Cree (CREE), Tellabs (TLAB) and ADC Telecom (ADCT). These are terrific plays in the smartphone food chain and are included in the "Mad Money" Mobile Internet Index.

JJC pick.

JJC pick.

Second was telco equipment maker Tellabs (TLAB). Cramer said Tellabs is currently trading just about its cash value and has no debt on its balance sheet. The company supplies telcos and cable companies with equipment to increase bandwidth and Cramer said "we need more bandwidth." He said there is almost no downside in the stock, but the potential for sizable upside.

Analysts expect Tellabs, another company on our list, to boost 2009 earnings by only a penny a share, to 19 cents. Of greater comfort: The company hasn't a smidgen of long-term debt. Tellabs' shares have fallen 40% this year, to a recent $3.91 apiece. The Naperville, Ill.-based outfit has been hurt by the weak market for telecom equipment.

Because this R&D-at-a-reasonable-price idea delivered returns amid the Crisis of '08, we screened stocks last week for deeply discounted R&D investments. The result is a contrarian list from which you'd need a strong stomach to buy the high-ranking names: Tellabs (TLAB), Motorola (MOT) and Sun Microsystems (SUNW) have foundered, despite heaps of R&D spending. Their stocks are down by as much as 50% this year.

a disappointing investment

bad ratings

MADE ME LOSE MONEY

I bought tlab at 16 should I sell?

SOLD

excuses and hard to lead tech from IL