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"I have a $17 stock for you that, if everything goes right, could easily trade up to $100 per share," Jim Cramer told viewers of his "Mad Money" TV show Friday.
The stock is NMT Medical (NMTI).It's not a buy-and-hold play, he said, but if you're willing to take some risk it could possibly make you some money fast off of people who suffer from severe migraines. There's a heart defect called patent foramen ovale (PFO) that affects one in five people and has been connected with an increased likelihood that a person will have migraines, Cramer said. If you close the hole in the heart caused by the defect, it could have a profound impact. NMT Medical has an implantable, stent-like device called CardioSEAL that could help plug this hole and is already being used to help with strokes, he said. And right now the company is trial testing the device to prove its effectiveness. If the trial works, I think you'll be hearing about it and paying $100 a share, Cramer said. But, he cautioned, the stock could go below $10 if the trial testing don't work out for the company. Still, Cramer thinks the potential upside outweighs the downside. He admitted that he can't say with any authority which way the study will go, but he can say what it will mean if the study shows that the product works. He came up with the $100-a-share number by looking at the figures NMT Medical offers, including the fact that 3 million people get migraines with aura, the kind associated with the PFO heart defect. These are people who miss work because their migraines are so bad, he added. Right now at $17 a share, the company has implanted less than 20,000 of these devices worldwide, Cramer said. But if the device proves effective, hundreds of thousands could want it, and there's not a lot of competition on the horizon, he said. He told a caller that drugmakers with migraine treatments will likely badmouth the product, but that the consumer will decide the winner in this battle and pick the product that actually takes away their pain. And while he typically does not recommend one-product players, he reminded viewers that buying this stock means going out on a limb and getting into a very speculative play.