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Cramer's 'Mad Money' Recap: Vanity Fare

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The Fountain of Acquisition

Merger stories come and go and rarely make you money, but Jim Cramer on Wednesday's "Mad Money" TV show told viewers to start buying Allergan (AGN) because it acquired Inamed (IMDC).

The stock is down because of the acquisition, a purchase that will ultimately make it a one-stop shop for artificial youth.

"And there's a bull market in artificial youth," Cramer said, adding that the aging boomers are one of the vainest generations in history.

With the acquisition, Allergen will add more vanity procedures to its Botox treatment, the most popular nonsurgical procedure of 2004.

As for the competition, Cramer said that it's more exciting than Syneron Medical (ELOS) and IntraLase (ILSE) because the deal allows it exposure to all cosmetic treatments.

Inamed brings to the table breast implants, skin graft alternatives to deal with scars and dermal-filler products to smooth wrinkles.

Calpine Can't Hurt You

Cramer also warned viewers that a Calpine bankruptcy doesn't mean trouble for its competitors, particularly Dynegy (DYN).

It's not another cheap, debt-ridden utility company like Calpine, Cramer said.

Dynegy just got upgraded by Moody's, has a third of the debt that Calpine had and has seen three straight profitable quarters, he said.

"It should soon be universally considered if not good, viable -- and worth more than it's priced at," said Cramer.

A last key difference is that, unlike Calpine, Dynegy isn't dependent on natural gas. The company is using coal from the Powder River Basin, the largest source of coal in the U.S.

And with natural gas prices so high, coal starts to look a whole lot cheaper.

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