American Axle (AXL): "I can't recommend auto parts right now."
In the "Executive Decision" segment, Cramer spoke with Joe Almeida, chairman, president and CEO of Covidien (COV), a company that's taking control of its own destiny by spinning off its pharmaceutical business. Shares of Covidien have popped 25% since Cramer first got behind the company on Dec 9.
Almeida said the spinoff is all about bringing value to Covidien shareholders. He said the pharmaceutical and medical devices business have very different life cycles, which is why the split will make sense to prospective shareholders of each entity.Almeida said the slower-growing drug business is still a great business, one that's in great markets and able to deliver healthy margins and cash flows. Meanwhile, the fast-growing medical devices business has been refocused on growth and is concentrating on disruptive technologies that are bringing new treatments to patients that previously could not be treated. When asked about the pressures of health-care reforms to cut costs on medical devices, Almeida noted that hospitals will always pay for devices that save lives, which is what Covidien offers. He said the company always looks at all its devices through both clinical and economical prisms, which is why they can deliver life-saving devices at the right price. Cramer continued his support for Covidien.