RealMoney Radio Recap: Pfizer ... Pfft!

11/30/06 - 03:33 PM EST

TheStreet.com Staff

The most "intriguing" rally is in health care and drug stocks, Jim Cramer said on his "RealMoney" radio show Thursday.

The bottom has been put into these stocks postelection, and now they are screaming, "buy, buy, buy!"

He considers WellPoint (WLP Quote) best of breed and also likes MedcoHealth (MHS Quote).

For his charitable trust, Action Alerts PLUS, Cramer said he has been buying Quest Diagnostics (DGX Quote).

He also believes that Schering-Plough (SGP Quote) and Johnson & Johnson (JNJ Quote), which he also owns for his trust, are "too cheap," as is Amgen (AMGN Quote).

However, Pfizer (PFE Quote) is "too expensive," Cramer said.

Pfizer is ramping today because it came out and said it is having a "giant upside surprise." But this is not true, Cramer said.

In fact, the company has fired a lot of people and is in a moment in time where it is trying to "create an upside surprise by lowering its bar," he said.

"Pfizer is a challenged company," Cramer said, adding that there are a lot of drug stocks worth owning more, such as Merck (MRK Quote), Novartis (NVS Quote) GlaxoSmithKline (GSK Quote) and Schering-Plough.

Citi Lite

When a chief executive is in trouble, a disgruntled member of the company's board will likely leak it to the media, said Cramer.

But this is not happening at Citigroup (C Quote) with CEO Chuck Prince, he said.

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