This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

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) "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) Fidelity Select Biotechnology 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.

Lumberjacking

"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), Georgia-Pacific (GP) and Weyerhaeuser (WY).

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs