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

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"Don't be fooled thinking you missed the boat" on Celgene (CELG Quote) "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 Quote)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 Quote) and Genentech (DNA Quote). 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 Quote), Georgia-Pacific (GP Quote) and Weyerhaeuser (WY Quote).