'RealMoney' Radio Recap: Ghosts of Rallies Past
Peltier likes Landec (LNDC) because he sees the company benefiting from the growth of packaging for supermarket fresh-cut fruit and vegetables. It's not the cheapest stock in the world, he said, but the company has demonstrated 60% earnings growth each year for the past three years, he said. Peltier believes Landec could get to $8 to $10 over time. Landec traded at $7.79 late Friday.
Cramer said the stock "sounded like a buy."
Of Prana Biotechnology (PRAN), Peltier said it was the one stock "I'd definitely give a buzzer to." The company has no revenue, he said, and although it has $21 million in cash, it is burning through cash at a rate of $30 million a year, he said. It's likely Prana will need to do a secondary offering, he said. If you really want to buy the stock, wait for the secondary, he said.
Cramer recommended taking a pass on Prana.Finally, Peltier said Dynegy (DYN) is a stock in the Stocks Under $10 newsletter that he particularly likes. He believes Dynegy is turning its business around, and he does not believe the stock will continue to trade in the $4 range much longer. Dynegy traded at $4.77 late Friday.
Cramer's CallersCramer said talk of CVS (CVS) acquiring Albertson's (ABS) pharmacies would be a red flag for CVS. CVS recently acquired Eckerd, and another acquisition would further raise suspicions there "isn't the kind of natural growth in this industry" that there once was, he said. Cramer would recommend swapping out of CVS into Walgreen (WAG), which he believes will soon take out its 52-week high of $49.01. Walgreen traded at $46.94 late Friday.
Lightning RoundBullish Cramer was bullish on Mittal Steel (MT), Cigna (CI), UnitedHealth Group (UNH), W. P. Carey (WPC), Texas Instruments (TXN), Schering-Plough (SGP) and Nelnet (NNI). Bearish Cramer was bearish on DreamWorks Animation (DWA), RadioShack (RSH), Anadarko Petroleum (APC), Impac Mortgage Holdings (IMH) and Pfizer (PFE).
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