Lenny Dykstra
A quick note on my suggestion Tuesday to close out Pfizer(PFE Quote - Cramer on PFE - Stock Picks) before the stock went ex-dividend. As I stated yesterday, the looming dividend, combined with a stock market that has been nothing short of "en fuego," indicated that it was wise to make the adjustment and close out the trade $1,200 to the good.
Today's pick is AstraZeneca(AZN Quote - Cramer on AZN - Stock Picks), the London-based pharmaceutical giant. With strong growth in the health care arena, I believe now is the time to take a look at this company. It took a big hit after announcing it was buying MedImmune(MEDI Quote - Cramer on MEDI - Stock Picks), a Maryland-based biotech company, for $15 billion. Although this acquisition may take a while to boost AstraZeneca's earnings, it adds a great new and growing segment to the company's arsenal of profitable products. One of those products is Crestor, a member of the statin class that reduces bad cholesterol, or LDL, while raising HDL, or good cholesterol. Also, MedImmune collects royalties on sales of vaccines for human papillomavirus (HPV). This bodes well for AstraZeneca's future, as this vaccine is newly offered and quickly gaining traction. AstraZeneca boasts a free cash flow of $6.19 billion, giving it significant leverage and the ability to seek out valuable acquisitions. Although the company has been relatively slow in bringing new pharmaceutical products to market, it can use this cash flow to acquire new pharmaceutical and biotechnological products.
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