Mad Money Recap
Cramer's 'Mad Money' Recap: Buying Time
TheStreet.com Staff
11/13/07 - 08:00 PM EST
Click here for an archive of Cramer's "Mad Money" recaps.
Tuesday's big market rally demonstrates why people should stay in the game and take advantage of buying opportunities, Jim Cramer told viewers of his "Mad Money" TV show. "This rally gives us a week worth of good," he said. "We should be higher than we are now a week from today." However, he said the volatile market will swing back and forth, much like it did in the 1990s. Cramer said short-term investors can make some money in this "treacherous and horrible" market. But he reminded investors not to buy into hope because the market hasn't bottomed yet.
Biotech Back in Vogue
During the 1990 market meltdown, high-growth biotechs worked, especially Amgen (AMGN Quote - Cramer on AMGN - Stock Picks), Cramer told viewers. Now, after this five-day rally, these same stocks should come back in vogue and three biotech stocks stand out, he said. The "more conservative" pair he likes is Genentech (DNA Quote - Cramer on DNA - Stock Picks) and Celgene (CELG Quote - Cramer on CELG - Stock Picks). "When the rally ends next week these should be the men standing," he said, noting investors should scale into these stocks, which he likes for 2008. Celgene and Genentech both have drugs that seem to have promising advances in the pipeline, he said. Celgene's Revlimid drug, which treats blood cancer, holds promise for increased label expansion next year, he said. Celgene, Cramer said, is a stock investors should consider buying before the American Society of Hematology's annual meeting in December. He said the stock should go higher because it has a 42% long-term growth rate although its last quarter wasn't so hot. Genentech, he continued, has several successful drugs, including its "miracle cancer drug" Avastin that could be approved for other uses. The catalyst here is a meeting the Food and Drug Administration's Oncologic Drugs Advisory Committee will have on Dec. 5 to discuss Avastin. The meeting, Cramer believes, should bring great news. Of the two, he prefers Celgene with Genentech a close runner-up.Turn On Onyx
Cramer's favorite biotech and the one he feels is the Amgen of 2008 is Onyx Pharmaceuticals (ONXX Quote - Cramer on ONXX - Stock Picks), a stock which hit its 52-week high on Nov. 7. Its main drug, Nexavar, is used as an anticancer therapy and is "amazing," he said. Similar to Revlimid and Avastin, Nexavar is seeing label expansion and being used off-label to treat liver cancer. This, Cramer said, was a big part of why Onyx's last quarter was so "phenomenal." While Onyx has the growth, it is riskier than Celgene or Genentech, which are bigger, more established and more profitable, he warned. Cramer recommended Celgene and Genentech for the more cautious.Sudden Death
During the "Sudden Death" round, Cramer was bullish on Marvel Entertainment (MVL Quote - Cramer on MVL - Stock Picks), Marshall & Ilsley (MI Quote - Cramer on MI - Stock Picks) and First Solar (FSLR Quote - Cramer on FSLR - Stock Picks). He was bearish on Panera Bread (PNRA Quote - Cramer on PNRA - Stock Picks) and Yingli Green Energy (YGE Quote - Cramer on YGE - Stock Picks).Mad Mail
In his "Mad Mail" segment, Cramer told an emailer he's increasingly concerned about PepsiCo (PEP Quote - Cramer on PEP - Stock Picks) because of the higher cost of raw materials. Coca-Cola (KO Quote - Cramer on KO - Stock Picks) came out and said their raw costs have peaked, meanwhile Pepsi wasn't able to say that, he said. Regardless, Cramer said he still considers Pepsi a good company.