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As Jim Cramer notes often on Mad Money, there's a place for a speculative stock or two in every portfolio. Recently, Cramer juiced the emotions of Sirius XM (NASDAQ:SIRI) longs when he referred to the stock as a speculative play. SIRI is a two-stage speculative stock.

First, it was pure penny stock speculation. Clearly, it's jettisoned that categorization, notching a recent 52-week high of $2.44. SIRI sits in stage two right now. Pulling back to around $2 a share, it's anybody's guess as to whether the company can take the next leg up. Given the lack of vision displayed on the company's recent earnings conference call and fierce competitive headwinds, it's a speculative play I am not willing to put my money on.

In the above-linked article, Cramer used Ford (NYSE:F) as an example of a speculative stock that generated massive returns, jumping from around $4 per share in the depths of the financial crisis to as high as $18.97 earlier this year.

Since that high, F shares have been victim to a relentless sell-off, yet the news appears largely good from the company. Or at least not so bad to warrant a stock price flirting with sub-$11.00. Of course, the is it real or is it a bearish head fake crisis we're experiencing now has quite a bit to do with F's recent leg down.

In any event, this potentially healthy market correction presents several excellent buying opportunities. I think F is one of the best. Double-dip recession or not, I think Ford comes out of its second leg of speculation a winner.

Please note, I am long F March 2012 $16 calls.

I have written several articles heaping praise on Demand Media (NYSE:DMD). The stock continues to get crushed ahead of its earnings report next week. You can review my thoughts on the company here. Regardless of what the earnings report brings, I am bullish. On weakness I will buy shares of the common stock and take my lumps on my very speculative long calls. I know this company better than any uninformed blogger or anonymous commenter. As I have written, there is more to this company than eHow articles on how to core an apple. Demand actually executes a lean and mean version of the scatter-brain business model Carol Bartz is trying to pull off over at much-larger competitor Yahoo (NASDAQ:YHOO).

Note, I am long DMD November $12.50 calls.

Take a look at the wild chart of Snap Interactive (OTCQB:STVI), courtesy of FreeStockCharts.com.

Click to enlarge


Another stock in somewhat of a second leg of speculation. Round one took it from pennyland to $4.50 per share. Now, in round two, Snap needs to show that its impressive revenue growth is for real.

I like what I hear from Snap Interactive CEO Cliff Lerner. Despite the typical message board postings bashing the company for everything from pumping to being fraudulent, Lerner appears to take a sane, if not cautious, long-term on the business.

Also, please note, I am long 1,000 shares of STVI.OB at $1.01.

Just as the correction (or crash or recession) we're going through generates buying opportunities, so does guilt-by-association among Chinese stocks. After reading fellow Seeking Alpha contributor Arthur Porcari's articles in Kandi Technologies (NASDAQ:KNDI) and conducting my own research, I believe Kandi is a victim of circumstance.

At day's end, one way investors make money in the market is to get into a stock when everybody else is against it or its broader sector. After the downfall of tried and true Chinese frauds, and some where the jury remains out, the vultures came after Kandi. After reviewing the situation, I don't think there's anything below board going on. I am confident in the company's response to the allegation of fraud.

In the U.S., massive opportunity exists for companies like Tesla Motors (NASDAQ:TSLA) to go after the high-end market with luxury electric vehicles. In China, Kandi already dominates and has room to grow revenues in the country's electric go-kart market, not to mention its Quick Battery Exchange business.

Note, I am long 775 shares of KNDI an average of $2.50 per share.

Disclosure: I am long F, DMD, OTCQB:STVI, KNDI, TSLA.

Additional disclosure: With the exception of KNDI and TSLA, I opened each long position noted in this article on Thursday, August 4th. I am also long F common stock. I opened my position in KNDI on Wednesday, August 3rd. I have been accumulating shares of TSLA for several weeks.

Source: Putting My Money Where My Mouth Is: Speculative Stocks I'm Buying