Making matters worse, Teva now has its own branded drug business and will be on the other side of the trade when its own $3.8 billion multiple sclerosis drug loses its patent protection.
Cramer said Teva may seem cheap trading at only seven times earnings, but with the generic space increasingly becoming a commodity it's unlikely Teva will be able to grow much from here. That makes it a value trap, especially given how many other drug makers are offering growth plus great dividend yields.
Now and Then
Continuing with his argument that the markets are not in bubble territory, Cramer took a look at more stocks and sectors to make some comparisons between now and the markets of 2001, when a bubble really did exist.
Cramer noted that back in 2001 stocks were considerably more expensive than today. Alcoa (AA) traded at $44 a share; today, it trades at $8. US Steel (X) traded at $191; today, it's $17. Freeport McMoRan (FCX) was at $62; today just $33, to name a few.In the retail sector, stocks may seem expensive compared to where they've been recently but historically they're fairly valued. The same holds true with the industrials, he said. They're not rich, nor are they bargains. In fact, Cramer said there are only three sectors that he feels are bargains at the moment, and those are the banks, technology, and oil and gas. He said stocks including KeyCorp (KEY), a stock he owns for his charitable trust,