This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: Toxic Bond Auctions (Final)

Promising Drug

For his second "Executive Decision" segment, Cramer spoke with Don Bailey, president and CEO of Questcor Pharmaceuticals (QCOR), a small biotech company whose primary drug, Acthar, has a lot of promise. Shares of Questcor trade at 23 times earnings and the company has a 42% growth rate.

Bailey explained that Acthar is used to treat autoimmune diseases such as muscular sclerosis. He said the drug costs $24,000 a vile and is only prescribed a few thousand times a year so far. Bailey said that his company has a safety net in place to see that all eligible patients can receive the treatment and in some cases the government pays for it, while in others insurance will.

Bailey also noted that Acthar has a complicated extraction and manufacturing process, so it's unlikely that the drug will ever face generic competition. He was also upbeat on finding new indications for the drug and said it's already being used for spasms in children and also for some kidney ailments.

Cramer said that Questcor remains a promising company and its drugs could be used by hundreds of thousands of patients.

Lightning Round

Cramer was bullish on Colfax (CFX), Verizon (VZ) and AT&T (T).

Cramer was bearish on NII Holdings (NIHD), Frontier Communications (FTR), Akamai Technologies (AKAM) and VirnetX (VHC).

Trading Natural Gas

In his "No Huddle Offense" segment, Cramer opined on the difficulty in picking stocks that fit a "green" thesis. He said that everyone loves wind and solar plays, but those need subsidies to survive. THe same applies to ethanol stocks. Cramer said that recycling is interesting, but that tends to be too volatile. He likes energy conservation plays, but those are also economically sensitive.

That's why Cramer has been focused on natural gas this week, as it's a cleaner, if not a totally clean, fuel. But even there Cramer said there are problems. He said if President Obama is re-elected, it's unlikely that natural gas will be adopted for surface vehicles, but if Republicans win, it likely will. So what's an investor to do?

Cramer said they should split the difference and buy Chart Industries (GTLS), which makes equipment to liquify natural gas. He explained that if we use natural gas for vehicles, we'll need to liquify it, and if we export it, we'll still need liquifying equipment. Chart Industries, he said, wins both ways.

--Written by Scott Rutt in Washington, D.C.

To contact the writer of this article, click here: Scott Rutt.

Follow TheStreet on Twitter and become a fan on Facebook.

To submit a news tip, send an email to: tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs