Comparing Pinnacle to B&G Foods, Cramer said that he thinks the stock could be cheap all the way to $30 a share.
A Healthy Investment
In the 1990s, Big Pharma was sitting in the hotseat of innovation, Cramer told viewers. That's why he still owns
(BMY) for his charitable trust,
Action Alerts PLUS
But with so many of those former blockbuster drugs now going off-patent, the rate of innovation at these big pharma names has slowed, explained Cramer, which means the best investments in the space are no longer with Bristol-Myers, they're with companies like
(CELG - Get Report).
Celgene is growing at a staggering 22.9% a year, noted Cramer. Despite its stock rising 42% since the first of the year, shares still trade at just 16 times earnings.
Cramer characterized Celgene as a three-legged stool. The first leg is the company's blood cancer treatment, Revlimid. With new indications coming, Revlimid could be a $6 billion business. Then there's the companys' breast cancer treatments, which also have possible indications for pancreatic cancer, among others. That represents another $1.5 billion opportunity. Finally, there's Celgene's anti-inflammatory portfolio for arthritis, another $3 billion opportunity.
Cramer said if you combine the potential of all these treatments and then add Celgene's proven management, it's easy to see why this stock remains among the hottest of the group. Despite its potential, shares still only trade for 8.6 times earnings when looking towards 2015 and beyond.
In the Lightning Round, Cramer was bullish on
Briggs & Stratton
Home Loan Servicing
Cramer was bearish on
Executive Decision: Jeffry Sterba
In the "Executive Decision" segment, Cramer spoke with Jeffry Sterba, president and CEO of
American Water Works
(AWK - Get Report)
, a company on the front line of repairing our country's aging water infrastructure.
Sterba said America needs to spend double or even triple what it does annually to keep up with its aging infrastructure. In many cases, he said, small municipalities simply cannot keep up, which is where American Water Works comes in. Sterba said his company invested over $1 billion last year in infrastructure to serve its regulated customers.
American Water is also on the acquisition trail, making some 15 acquisitions last year to help expand its offerings across the country. Sterba said his company is becoming a larger player in the hydraulic fracturing business, providing 350 million gallons of water into the Marcellus and Utica oil shale regions.
Cramer said that with its 8% growth and its 2.5% dividend yield, American Water Works is the play on water that so many investors have been asking him about.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said it is often difficult for a company to turn on a dime, but you'd be amazed at what some can do with a quarter.
Case in point,
(DG - Get Report)
, the chain that was left for dead last quarter on gross margin and competition concerns. Earlier Monday, Dollar General announced it turned itself around in just 90 days.
Similar turnarounds have occurred at
, said Cramer, and he expects
to follow suit.
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-- Written by Scott Rutt in Washington, D.C.
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