This Day On The Street
Continue to site
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: Pay Attention and Prosper

First, after opening at $42 a share and popping to $45 within the first 15 minutes of trading, Facebook failed to hold that level, its first bearish signal.

Second, shares closed near its lows on its first day, its second strike. Finally, shares continued to sink on weak volume during day two, the nail in the coffin for the bulls.

Using Facebook's full daily chart since its IPO, however, Redler noted a "cup and handle" pattern, which is a bullish signal noting excess demand may finally be exhausted. Redler felt that shares are now a buy between $30.50 and $32.50 and he expects strength to continue to an additional seven to eight points of upside.

Cramer, however, remains bearish on Facebook, saying it's too dangerous to own before the company reports earnings on July 26. Too many questions remain about the Facebook's business, he said, and only the earnings call can answer them.

And the Winner Is...

The results are in and "Mad Money" viewers have voted Arena Pharmaceuticals (ARNA - Get Report) as their pick for the biggest winner in the second half of 2012. Cramer said Arena received 67.1% of the vote in his "Home Run Derby" Monday night, but he's still skeptical.

Cramer said that when it comes to biotech companies, he looks for small, undiscovered names -- the exact opposite of Arena, which took center stage when its weight loss drug Belviq received U.S. Food and Drug Administration approval earlier this year. While the markets are expecting Belviq to be a $1 billion to 3 billion opportunity for the company, it may not be able to live up to the hype.

What could go wrong? Well, for starters Belviq its not the panacea for obesity. The drug only produces an average 5% to 6% weigh loss in patients after 12 weeks. If the drug cannot be taken in higher dosages without serious side effects and if it fails to produce results in 12 weeks, patients must discontinue its use. There's also the issue of whether HMOs will cover Belviq. One is already on record as saying it won't pay.
2 of 4

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ARNA $1.57 -0.32%
CMI $114.54 0.57%
FB $117.75 -0.05%
GSM $9.92 0.71%
AAPL $93.20 -0.04%


Chart of I:DJI
DOW 17,648.97 -11.74 -0.07%
S&P 500 2,048.63 -2.00 -0.10%
NASDAQ 4,709.3430 -7.7510 -0.16%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs