Cramer's 'Mad Money' Recap: Tracking Caterpillar

Hope Will Float Nastech

When "Mad Money" first aired two years ago Cramer had the CEO of Regeneron Pharmaceuticals (REGN Quote) on his show.

At that time, Regeneron was a $5 stock. It then went to $24 and settled back to $18. The stock did that, Cramer said, even though it doesn't have a "concrete" product and its revenue is in a decline.

By appearance, Regeneron didn't deserve to go up, but Cramer said he knew it would go higher anyway because biotech stocks are "insane." In the bizarro world of biotech, the worst company could be the best stock because of hopes that it will be worth something one day, Cramer explained.

He believes the next stock in this sector to follow in Regeneron's footsteps will be Nastech Pharmaceutical (NSTK Quote).

People in this business moan when Nastech Pharmaceutical's name is mentioned, Cramer said. It overpromises, underdelivers and is "a comedy of errors." Plus, it doesn't have a single important drug that's ready to come to the market, he said. "It's a joke, just like the last joke I told."

However, Nastech should go higher because it has money in the bank after recently raising cash. Also, although none of its compounds is ready to come to market, "the thing about biotech stocks is that they trade on hope," Cramer said.

The company has finally figured this out, and now that it has the "religion of silence," it should be ready to move, he said. Cramer also likes Nastech because its obesity drug actually helps people lose weight, it has better drug delivery for insulin, and it is the only "pure play" on autism.

He advised people to study Nastech for the weekend before buying it and urged them to use limit orders.