This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: 'Timber!'

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

"Don't be fooled thinking you missed the boat" on Celgene (CELG - Get Report) "when it's still in port waiting for you," said Jim Cramer on his "Mad Money" TV show Tuesday.

Celgene rose 10% Monday when word leaked that its Revlimid drug for myelodysplastic syndromes (MDS) does not have the safety concerns people feared. Celgene goes before a Food and Drug Administration panel Wednesday to seek approval for Revlimid.

Banking on Biotech

Cramer said that analysts are beginning to downgrade the stock ahead of the panel meeting, believing that all the good news is priced in.

"That logic is wrong," said Cramer, adding that biotech stocks often run in anticipation of FDA approval, but they can run after approval is granted as well.

Cramer said he would buy Celgene ahead of the FDA panel meeting -- and afterward -- if more analyst downgrades were forthcoming.

A caller asked how one should go about doing "homework" on biotech stocks. "It's not easy," said Cramer. If one doesn't have the time or inclination, Cramer recommends owning a biotech exchange-traded fund or the (FBIOX) fund.

Another caller asked Cramer what he thought of Celgene's prospects for the long term. Cramer said long term he preferred Amgen (AMGN) and Genentech (DNA). Celgene is an intermediate-term play, he said.

Another caller asked how much revenue Revlimid would generate for Celgene. Cramer said he expected $250 million in sales the first year and "maybe more later," as the drug's use expands to other indications.


"It looks like we're headed for a lumber shortage," said Cramer. "We need all the lumber we can get our hands on in order to rebuild," in the wake of Hurricane Katrina.

The lumber business has been "awful" for a very long time, said Cramer. So, it's important to be selective. Cramer was bullish on Plum Creek Timber (PCL - Get Report), Georgia-Pacific (GP) and Weyerhaeuser (WY - Get Report).
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ATK $0.00 0.00%
AMTD $28.81 -1.64%
PCL $36.54 0.00%
BBY $31.50 -0.76%
CELG $100.90 -2.25%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs