Cramer's 'Mad Money' Recap: Picking the Right Stocks
Another player is Vertex Pharmaceuticals (VRTX), but that company's drug is too early in development to be a major player at the moment.
That leaves Gilead Sciences (GILD), said Cramer, a company that's trading at just 13.5 times earnings with a 16% growth rate. Gilead's drug, currently known as the catchy GS-7977, is in the same family as Bristol-Myers' drug, only without the side effects. The treatment is a 12-week oral regiment, compared to a 24-week injection routine, and the cure rates are, so far, markedly higher.
Cramer said Gilead is a lot more than just GS-7977. however. The company also leads the way in HIV treatments and has a host of other promising drugs in the pipeline.
Lightning RoundHere's what Cramer had to say about callers' stocks during the "Lightning Round": Cabot Oil & Gas (COG): "I'd rather wait for a pullback. I say hold off and wait." Advanced Micro Devices (AMD): "Why? I have nothing to say about those guys. I don't want to touch it." International Business Machines (IBM): "I say take some profits in IBM and let the rest run." Frontier Communications (FTR): "The business fell off. They were too confident in their business and I don't like the stock because of that." Main Street Capital (MAIN): "This one is on fire. I think the stock is a good one." Ecopetrol SA (EC): "That's a pretty good, well-run company. I think it's better than Total SA (TOT)."
Am I Diversified?In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included: Coca-Cola (KO), McDonald's (MCD), Amazon.com (AMZN), Apple (AAPL) and Kraft Foods (KFT). Cramer said this portfolio was properly diversified. The second portfolio's top holdings included: WellPoint (WLP), McDonald's (MCD), MGIC Investment (MTG), Joy Global (JOY) and Excelon (EXC). Cramer said he was also bullish on this portfolio's diversification.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV