Speculative Medical Device Play
For "Speculation Friday," Cramer once again looked towards the medical device makers for a safe place to speculate. He said these stocks are primarily domestic, with little international exposure, have no generic competition like the drug stocks, and have found favor in Washington.
Among the group, Cramer singles out Heartware (HTWR) as his favorite. He said that Heartware makes devices to help those waiting for heart transplants, and with 5 million people in the U.S. suffering from heart disease, the market opportunity is growing.
Heartware is waiting for FDA approval for its lastest assistive device, a device that's already been deemed superior in Europe, with a 90% survival rate versus only 78% for the competing device made by Thoratec (THOR), of which Cramer is not a fan. Cramer said the Heartware device is clearly superior, with a faster surgery, faster recover and fewer complications.Cramer was also a fan of Heartware gaining approval for "destination therapies," devices that forgo the need for a transplant altogether. Approval for destination therapies is expected in 2013. Shares of Heartware are $15 off their $99 high, and Cramer said that makes this speculative name a steal.