This Day On The Street
Continue to site
ADVERTISEMENT
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

Cramer's 'Mad Money' Recap: Facing a Worst-Case Scenario

In closing, Cramer said the worst case is 2011, not 2009, and stocks could fall another 10% to 12% from current levels, but there's no chance we'll see a 50% decline any time soon.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Daniel Junius, chairman and CEO of ImmunoGen (IMGN - Get Report), a biotech stock that's soared 79% since Cramer first recommended the company in November 2009 and 27% since Cramer last spoke with Junius on Sept. 26.

Junius provided Cramer with an update on the company's new drug, presently named TDM-1, a treatment for breast cancer. According to data just released at the American Society of Clinical Oncology conference, the Phase 2 studies of TDM-1 have shown the drug works better than present treatments and has a third fewer side effects for patients.

ImmunoGen is now seeking priority review for TDM-1 at the U.S. Food and Drug Administration as oncologists are very enthusiastic to begin using it.

When asked about the potential revenue stream for TDM-1, Junius confirmed that ImmunoGen did enter a joint partnership in 2000 that limits the royalties his company can receive, but even with smaller royalties the potential for TDM-1 is enormous for the company. Junius said the company had no idea back in 2000 that TDM-1 would see such great successes.

Given the potential for TDM-1, as well as for the many other drugs in the ImmunoGen pipeline, Cramer continued his recommendation of the company.

The Fed Needs Some Backup

The Federal Reserve is not the answer, Cramer said, sounding off against those who feel lower interest rates or another round of quantitative easing will fix all that ails our economy. Cramer said the Fed has already done all it can and it's now up to the U.S. Congress to instill confidence and for the leaders of Europe to get their act together.

With the 10-year Treasury yielding 1.5% and likely headed down to just 1%, Cramer said rates simply cannot go much lower. In fact, with interest rates already at historic lows, foreign and domestic investors are better off buying real estate, not stocks or bonds at these levels.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
ARIA $8.99 0.00%
IMGN $10.12 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs