Cramer's 'Mad Money' Recap: Two Specs to Examine

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Jim Cramer launched Friday's "Mad Money" TV show by offering viewers two speculative stocks to research over the weekend -- a promising medical diagnostics play and an under-$10 technology name.

Cramer's first pick, Biosite (BSTE Quote), is the type of company market players should want to be in if the Democrats "storm the winter palace" in November, he said, "because then all the Big Pharma money will go into acquiring small diagnostics plays."

"We need to find new diagnostics stocks" as the older ones get played out, Cramer continued, and right now Biosite is looking "hot." The company makes rapid diagnostic tests -- products that help the doctors do their jobs more quickly and efficiently, he said.

These tests save people a lot of money by figuring out early what needs to be done, Cramer said. But Biosite is truly a "pipeline story," continually reinvesting its money to create new products, he said.

The reason Cramer said he's talking about Biosite now is because "it's sitting on top of a new product cycle," which should create major upside for the stock. In addition, although only four analysts are covering Biosite right now, he believes it should get more and better coverage as it rolls out its new products.

Plus, the stock has a major short position, which could very likely create a short squeeze and cause the stock to bounce, Cramer said. The shorts, he said, are attacking Biosite and will be penalized for it.

Moreover, in addition to having the product cycle, backing of its own management and smart money, factors that make Cramer believe Biosite is a buy, it also has had "meaningful buybacks."

Sun Will Rise Again

Cramer's second speculative pick, Sun Microsystems (SUNW Quote), is a company he has "hated for a very long time."

However, because new management is "shaking things up" at Sun Micro, Cramer believes the stock is an "under-$10 turnaround."

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