Working on the Right Mix
In the "Executive Decision" segment, Cramer spoke with Kieran Gallahue, chairman and CEO of
(CFN), a little-known health care company that delivered a two-cent-a-share earnings beat on a 3.7% increase in revenues. CareFusion currently has $1.2 billion in cash and trades at just 12.4 times earnings with a 13% long-term growth rate.
Gallahue explained that CareFusion has market-leading brands in the infusion and medical dispensing markets, but since the company was a spin-off of
(CAH), the hard part is getting the CareFusion company name to become recognized.
Gallahue went on further to explain that CareFusion is "where you want to be in health care," by having products that not only save on costs but also improve the efficiency and safety of hospital operations. He said since the company's spin-off, it has spun off two businesses and acquired two others as it attempts to rebalance its portfolio of products.
Gallahue said over the next few years, CareFusion will continue to simplify its business, eliminating the parts that don't add value and reinvesting in the areas that matter most.
Cramer said he likes the CareFusion story and the fact that the company is a virtual unknown despite its industry leading products and brands. He said CareFusion is worth a second look.
Cramer was bullish on
(CAT - Get Report)
(PSA - Get Report)
(DOV - Get Report)
(BJRI - Get Report)
(ARIA - Get Report)
(SBUX - Get Report)
Cramer was bearish on
In his "No Huddle Offense" segment, Cramer told viewers that they shouldn't take their cues from the oil futures market, which has been in rapid decline as of late.
Cramer said the
$1.43 billion bid for the Norweigan Aker Drilling proves that there's still a need for new deepwater rigs to keep drilling for oil. He said that the futures declines are nothing more than hedge funds liquidating their portfolios, and has nothing to do with tepid global demand for more oil.
Cramer once again noted that a vital commodity such as oil shouldn't even be allowed to trade on margin for precisely this reason.
--Written by Scott Rutt in Washington, D.C.
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