Cramer's 'Mad Money' Recap: Don't Miss Saigon Opportunity
01/05/06 - 07:37 PM EST
TheStreet.com Staff
Progenics, an Undervalued Biotech
For viewers who want a biotech stock that can be bought simply because it's extremely undervalued, Cramer suggested Progenics Pharmaceuticals(PGNX Quote - Cramer on PGNX - Stock Picks). "I think we're all a little sick of speculating on overvalued biotech plays," he said, adding that Progenics is cheap even though it's trading just below its 52-week high. The company is working on a drug to combat the negative side effects of painkillers like morphine. If a doctor hands out this drug every time he hands out painkillers, that could be huge, Cramer said. That's why Wyeth(WYE Quote - Cramer on WYE - Stock Picks) cut a deal with Progenics worth $416 million. The stock traded near $23 before the deal was announced, and is still under $27, a jump Cramer said does not reflect the value of the deal. He said that the company's market cap is only $660 million. If you subtract the $120 million it has in cash and the cash from the Wyeth deal, the company is valued at $105 million, a price he called "insanely cheap."Greenberg's Red Lights
Herb Greenberg, senior commentator for MarketWatch, appeared on the show to tell viewers that Take-Two Interactive(TTWO Quote - Cramer on TTWO - Stock Picks) is a dog and that its latest bad quarter is not an opportunity to buy. Greenberg said the company is a disaster, with no reliable income statement, balance sheet or forecast. The company's CEO said that he's upbeat about the global video-game market, but the head of Take-Two's global video-game division has quit. He also took the wind out of American Italian Pasta's(PLB Quote - Cramer on PLB - Stock Picks) sails. Greenberg said that the company's recent upgrades are based on previously reported numbers and that American Italian is restating those figures. He added that the company has lost tremendous amounts of market share to names like Barilla. He finished by saying that Johnson Controls'(JCI Quote - Cramer on JCI - Stock Picks) stock is rising because the company is no longer tied to the auto industry.
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