Jim Cramer Blog

Today's show started with Cramer putting on a straitjacket because the market is driving him crazy with all the wild swings going on in the major indexes. Psychiatric Solutions (PSYS) was his first recommendation of the day. It is the largest mental health service provider in the US. Cramer thinks that this stock is safe from all the problems in the market, and that it has a solid base and potential for growth. He is bullish on the stock and thinks that it could be worth up to $60.
Cramer then took some phone calls. The first caller asked for some good diabetes plays, and Cramer gave her Nastech Pharmaceutical (NSTK) and Novo Nordisk (NVO). The next caller asked about Synta Pharmaceuticals (SNTA), and Cramer said he needs to do his homework on it.
Cramer's most recent pick from "Microtrends" was Gamestop (GME) because the book says that the average video game player is now 33 years old, meaning that gamers have more money to spend on games and consoles since they are adults. Cramer also likes that the company has expanded outside the US. The stock has pulled back recently, so Cramer thinks the stock is a buy now, and that it could go up to $57.
"Sell Block." Cramer started by stating that Align Technology (ALGN) was one of his worst calls of the year since they guided earnings lower after this quarter. The next stock is Hansen Medical (HNSN), and recommends you sell so you can lock in a quick $11 gain since he recommended it, plus Intuitive Surgical (ISRG) is selling its share of the company. He also asked people to sell Lululemon (LULU) and Research in Motion (RIMM).
Cramer's final trade was Celgene (CELG), and he had the COO of the company on the show to talk about the upcoming prospects for the company's products. It is down, but Cramer still likes it.
he then talked about Intuitive Surgical (ISRG) and had CEO Lonnie Smith on the phone. They talked about the company's main product, the da Vinci surgical machine. Cramer thinks the stock is going much higher.
Sudden Death. Denbury Resources (DNR), which Cramer is bullish on. The next stock was Charming Shoppes (CHRS), which Cramer is bearish on. The next stock was LifeCell (LIFC), which Cramer likes. The next stock was Quintana Maritime (QMAR), which Cramer likes, along with Diana Shipping (DSX). The last stock was Delta Air (DAL), and Cramer said that he likes United (UAUA) better.

Labels: BBY. RIMM, CELG, CHRS, DNR, GME, ISRG, Jim Cramer, LIFC, LULU, Mad Money, Mad MOney Recap, NSTK, NVO, PSYS, SNTA

The Nightmare is Over: Boeing (NYSE: BA - News), United Technologies (NYSE: UTX - News), Deere (NYSE: DE - News), Ingersoll-Rand (NYSE: IR - News), Freeport-McMoRan (NYSE: FCX - News), Caterpillar (NYSE: CAT - News)
"The crisis - our short national nightmare - is over!" announced Cramer, reminding viewers of his prediction that the Fed would blink and cut rates. He felt that the removal of the line about "additional firming" from the Fed statement was responsible for the rally in the market on Wednesday and says the final third of the market, comprised of minerals, is hitting bottom. Cramer would aggressively buy cyclical stocks right now and named BA, UTX, DE, IR, FCX and CAT.
Gentlemen Prefer Haynes International (NasdaqGM: HAYN)
Cramer notes Haynes brought a secondary offering to the market, will be able to clean up its balance sheet and start moving. HAYN is a high-performance metals company, and is the cheapest member of the "red hot sizzling club" which includes Titanium Metals and RTI. Haynes is a fresh stock for analysts who are starved for a new name, said Cramer; "The demand for its product is only exceeded by the demand for its stock!"
Sugar-Free Danish: Novo Nordisk (NYSE: NVO - News)
Defensive stocks were performing "fabulously" on Wednesday, and Cramer would keep an eye on drug stocks, but not the American names. Cramer likes Danish company NVO which has 50% of the international market in diabetes treatment. NVO has "some of the best" insulin products, is selling human insulin inexpensively, has patent-protection and is not hampered by competition from generics. Cramer predicts the stock will move from $88.71 to $100.

Shopping for Wal-Mart (NYSE: WMT - News) with stocks Sears Holdings (NasdaqGS: SHLD), JC Penney (NYSE: JCP - News), Kohl's (NYSE: KSS - News)
On Tuesday, a University of Texas student made the bullish case for Wal-Mart because of new store design in Plano Texas. Cramer gave his response on Wednesday, and said he is bothered by the fact that Wal-Mart is a stock analysts claim to hate, yet 16 out of 28 still like it. Cramer doesn't see the company remodeling stores aggressively, and while he admits WMT is cheap on a price-to-earnings basis, he can't accept the fact that WMT is so well liked and its stores are boring places to shop. However, he promoted WMT from a triple sell to a "don't buy, don't buy!" and recommended other retail stocks: SHLD, JCP, KSS.

Mad Mail: Google (NasdaqGS: GOOG), Nastech Pharmaceuticals (NasdaqGM: NSTK), Wendy's (NYSE: WEN - News), Tim Horton's (NYSE: THI - News), McDonald's (NYSE: MCD - News), Chipotle Mexican Grill (NYSE: CMG - News)
Concerning Google, Cramer thinks its YouTube acquisition, far from being a sign of overexpansion, was “brilliant" and if it weren't for the Viacom lawsuit, the stock would be sitting at $470 or $480. Cramer would stay with NSTK at $10, noting it is the only company working on autism. When a caller asked about WEN and THI, Cramer suggested selling both and picking up MCD and especially CMG.
Published By SeekingAlpha

Labels: BA, CAT, CMG, DE, FCX, HAYN, IR, JCP, Jim Cramer, KSS, Mad Money, MCD, NVO, THI, UTX, WEN, WMT

Summary: Novo Nordisk (NYSE: NVO - News) is the world sales leader of insulin-related products. Its insulin-analog products are bio-variants of the human insulin molecule that work better, are more bioavailable, sell for twice the price, and enjoy extended patent protection. Together with competitors Eli Lilly and Company (NYSE: LLY - News) and sanofi-aventis (NYSE: SNY - News), they have converted about 1/2 of all insulin-using patients to make the switch -- and Novo's product is the most complete and convenient. Its 2006 insulin analog sales jumped 50%, driving EPS was up 12% and giving it a P/E ratio of 26. Can the company continue to merit such a lofty multiple? Tech trader Bill Alpert says yes. Diabetes 'growth' is widespread; China accounted for over 40% of its international growth last year (though the U.S. government has been slow in accommodating 'biosimilar generics'). The company has other growth opportunities: It has a Phase III drug similar to but better than Amylin Pharmaceuticals Inc.'s (NasdaqGS: AMLN) Byetta (sold by Lilly) because Novo's version is taken once daily vs. Byetta's twice. And its hemophilia drug NovoSeven promises to reduce severe bleeding in trauma patients and during heart surgery, and may prove to be the first drug to address bleeding strokes.
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Labels: AMLN, Barron's, LLY, NVO, SNY