This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Heavy Duty

Click here for an archive of Cramer's "Mad Money" recaps.


Editor's note: Jim Cramer's "Mad Money" will air on CNBC at 9 p.m. and midnight EST during the Winter Olympics. Check back on TheStreet.com and RealMoney.com after 10 p.m. for the nightly recap.

Jim Cramer's favorite epidemic just happens to be his favorite way to make money -- obesity. "It's never going to go away," Cramer told viewers of his "Mad Money" TV show on Monday.

The way to profit off the fat-fighting craze, Cramer said, is through the makers of weight-loss drugs. But because "we are a vain society," investors should seek drugs that "make people look good now."

A hugely popular drug is Acomplia, made by Sanofi-Aventis (SFY - Get Report), but Cramer doesn't recommend that stock since the impact of even a blockbuster drug on one huge company won't necessarily be a stock-mover.

Instead, Cramer likes Arena Pharmaceuticals (ARNA - Get Report), which has a drug about to enter Phase III testing and "should be the best thing on the market." It's currently called APD-356, but Cramer said "you can think of it as the new Fen-Phen without the heart attacks."

When Arena comes out with its version of Fen-Phen, Cramer said it should become the market leader. "Unless it blows up, Arena has a great risk/reward," he said.

Cramer added that Arena is also working on a "phenomenal" diabetes drug with Johnson & Johnson (JNJ - Get Report), and he could "easily" see the stock hitting $20 this year. (It closed Monday at $15.02).

A viewer called in to ask Cramer whether the Food and Drug Administration was hyper-sensitive to stimulant drugs at the moment. Cramer said the FDA was responding to pressure because a lot those drugs were being used by children.

But the issue with Fen-Phen was "the nasty problem" of people getting killed, a problem that Cramer doesn't forsee with Arena's drug. "It's Fen-Phen without the killer app," he said.

Another caller asked Cramer if there was a way to play the gastric bypass popularity. Cramer recommended Inamed (IMDC), which he says has had quite a run, but he's not willing to yet "ring the register."

A Sporting Chance

As viewers - and investors - watch the Winter Olympics, Cramer reminded everyone that it's too late to make money on the event now. To make any money on sports, you need to be looking ahead, specifically at soccer's World Cup or the 2008 Olympics.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs