Cramer's 'Mad Money' Recap: Shining Light on Laser Stocks

Click here for an archive of Cramer's "Mad Money" Recaps.

---

Jim Cramer told "Mad Money" viewers on Tuesday night that laser stocks are in play. The guys who get rid of the wrinkles are on fire, he said. As Cramer has said before, health care is the place to be for the next six months. The laser companies will be part of that move as well, Cramer said.

The technology, which went through fits and starts during the 1990s, now works. We now have lasers, Cramer said, that will make you look pretty. Indeed, laser technology has improved dramatically, and "lasers could make you rich," he said.

Before discussing which laser stocks investors should own, Cramer said that investors do not want to put these stocks into their retirement portfolios. Only discretionary funds should be used -- with no more than 20% of your portfolio holding these kinds of stocks.

With that out of the way, Cramer said that Candela(CLZR Quote) has 24% of the market. What's more, it has great sequential growth.

Cutera(CUTR Quote), which posted better-than-expected second-quarter earnings late Monday and raised its full-year guidance, is another laser play.

Laserscope(LSCP Quote) is yet another.

Syneron Qua Non

But the best laser stock to own, said Cramer, is Syneron Medical(ELOS Quote). The company, which reports earnings on Thursday, may not have as much of the market as Candela does, but it still has 14% of the market. And it may not have the sequential growth that Candela has, but Syneron does something that the rest don't. It does cellulite.

The rest of the players are in the dermatological market. Syneron, on the other hand, smoothes away cellulite. Syneron does skin treatment as well, but it's the only company doing cellulite. What's more, another reason that Syneron will do well is that people who are in noncore markets -- general practitioners, for example -- are buying its devices. The general practitioners are making good margins by using the devices.