Cramer's 'Mad Money' Recap: Quidel Passes the Test
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In order to stop the flu, you need to be able to diagnose it quickly, which is why Jim Cramer told viewers of his "Mad Money" TV show on Friday that he likes diagnostic-test maker Quidel (QDEL), as a play on avian flu.
There's not enough flu vaccine, said Cramer, so a speedy and effective diagnostic tool is paramount in the fight against the flu, said Cramer.
Quidel is profitable and stands a good chance to make a lot of money from its test, said Cramer. Nevertheless, the most important thing Quidel has going for it is the "buzz" that will be sustained "as we keep talking about the flu."A caller asked if flu concerns might hurt holiday travel, thus making travel companies potential short candidates. Cramer said he didn't believe so as both Priceline.com (PCLN) and Expedia (EXPE) recently said the travel business has picked up. Gas prices have turned down, he said, and that trumps flu concerns. Another caller asked if Yum! Brands (YUM), which owns Kentucky Fried Chicken, might see slowing growth in China as a result of bird flu. Cramer said as a play on China, he would swap out of Yum! and into Starbucks (SBUX) regardless of avian flu concerns because Starbucks is "right where Yum! was two years ago" in China, and it has even more growth ahead of it there than Yum! does at this point.
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