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TheStreet Open House

Cramer's 'Mad Money' Recap: Don't Build It and Profits Will Come

Fitzpatrick used a daily chart of Diana to confirm the pattern, noting the Jan. 2 break out to the upside was also when the 50-day moving average crossed above the 200-day moving average, a move known as a bullish crossover. The stock's 50-day average is now its floor.

Cramer said he agrees with Fitzpatrick's analysis and feels that any pullback in Diana, like the one today, is a buyable dip, as the shipping industry is finally beginning to turn the corner. He said that once Diana breaks above its current ceiling, the stock could easily achiever $14 a share and he wants viewers to get in on that pop higher.

Balm in Gilead

In the 1990s, investors looking for growth would turn to Big Pharma, Cramer told viewers, but today, the growth is in biotech, which is why he highlighted Gilead Sciences (GILD) the HIV and Hepatitis C powerhouse that's growing at 26% a year but trading at a scant 16 times earnings.

Cramer said that valuation makes Gilead cheaper than Bristol-Myers Squibb (BMY), a stock Cramer owns for his charitable trust, Action Alerts PLUS . While Bristol-Myers may have a 3.5% dividend yield, shares of Gilead are up more than 51% since he last featured the company back on Sept 12.

Gilead is a leader in the Hepatitis C market, where some four million people suffer from the disease in the U.S. alone. The current treatment for Hep C consists of a 24-week treatment with grueling side effects that only offers a 50% to 60% cute rate. But Gilead's next-generation treatment promises to cut that duration to just 12 weeks and offer cure rates between 78% and 100%. Given that Hep C causes 13,000 deaths a year, Cramer said the market is anxiously awaiting Gilead's new drug, expected in mid-2014.

But beyond Hepatitis, Gilead is also leading in the HIV space, with its new four-in-one pill expected to generate $2.8 billion next year. In addition, Gilead also has a strong pipeline of products including additional HIV and even cancer treatments.

Cramer said that Gilead remains one of his favorite biotechs. Even with the stock's strong performance so far this year, he still feels it's a bargain given the company's promise.

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