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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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) 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

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 17,117.04 +65.31 0.38%
S&P 500 1,984.11 +10.48 0.53%
NASDAQ 4,458.4820 +33.7780 0.76%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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