Bioscience Speculation Play
For "Speculation Friday," Cramer highlighted Pacific Biosciences (PACB), which is developing a third-generation DNA sequencing technology for a host of applications.
Cramer said Pacific Biosciences is not yet profitable and likely won't be until the end of 2014, however given that the $1.2 billion DNA sequencing business is growing at 20% to 25% annually, the upside for the company is sizable.
Cramer explained that when the human genome project first sequenced human DNA, the process took 13 years and cost $13 billion. The same process today costs just $10,000 and that cost is expected to fall to just $2,000 as newer technology, like that of Pacific Biosciences, comes into fruition.Cramer said the beauty of Pacific Bioscience's technology is that it can be used for any DNA, not just human DNA. That means the sequencer can be used for agriculture for genetically modified seeds and a host of other applications outside of just the health care arena. Better still, Pacific Biosciences not only makes money as it sells one of its sequencing machines, the company also makes money selling consumables and service after the sale as well. Cramer said every portfolio should have a little speculation in it, and Pacific Biosciences might offer that bit of excitement your portfolio is looking for.