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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Biotech Makes a Comeback

Editor's Note: This article was originally published on Real Money at 12:52 p.m. EDT on May 10. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK (Real Money) -- So, Celgene (CELG), Regeneron (REGN), Biogen Idec (BIIB) and Alexion (ALXN) rested, recharged and now are returning to their winning ways. Only Gilead (GILD) has yet to turn to the black, which means it's probably time to buy that one, too.

These stocks had the classic kind of recharge that you want to see if you are a bull. They must be as annoying as all get out if you are a bear because all that seems to happen with them is that people pay more for the same news over and over in classic multiple-expansion theory. That's always regarded as a total red flag by the purists, but has worked just fine for ages now, so it has made all of these a tough short.

Take Regeneron, one of my absolute favorites with the best macular degeneration drug. The company reported spectacular results and then rallied, although the results were spectacular if you actually just came to believe that Regeneron isn't that good. It sure is.

Then it got added to the S&P, which caused a short spike. The usual arbitrageurs then shorted the stock, betting post admission it would give up the ghost.

But virtually at the same moment that it was added, Allergan announced, in a true shocker, that its competitive drug to Regeneron wasn't up to snuff -- yet --and that caused the next spike up. Then the market rotated to the materials stocks, which are giving up the ghost today, and the move is now back in full swing based on, well, a rotation back into these stocks as the market takes note of the pipelines and the scrips that remain strong.

That means you can go back to Biogen, which people are doing right now as the MS scrips are real good. And I suspect they will go back to Gilead, too, as there's tons of drugs in the pipeline there, too.

Just a natural change in leadership from specs and materials back to what brought us up here in the first place.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

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
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs