Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Carolyn Boroden over the chart of Apple (AAPL - Get Report), an Action Alerts PLUS holding, to see if the recent rally in the stock is indeed for real.
Using a weekly chart of Apple, Boroden noted a total of five Fibonacci ratios in the stock, all pointing to its bottom in April. In fact, the Fibonacci ratios on Apple's daily chart also predicted the bottom in the stock within a few days of when it actually occurred. She concluded that based on her research, Apple is poised for a major trend reversal.
Using more traditional technical analysis, Cramer noted that Apple's double bottom has created a strong floor of support for the stock and its recently crossed over its five-day, 13-day, 30-day and, most recently, its 200-day moving averages, all very bullish signs.How high can Apple go? Boroden saw $582 a share as a shorter-term target, noting that it could approach it's all-time high of $792 a share thereafter. Cramer said he's not expecting $792 anytime soon, but he does remain bullish on the stock, as it still trades at less than 12 times earnings and has a lot of exposure to the strength building in Europe.
Lightning RoundIn the Lightning Round, Cramer was bullish on Rite Aid (RAD), CVS Caremark (CVS), Walgreen (WAG), Standard Motor Products (SMP) and Lockheed Martin (LMT). Cramer was bearish on Lorillard (LO)
Executive Decision: Daniel JuniusIn the "Executive Decision" segment, Cramer sat down with Daniel Junius, president and CEO of the speculative biotech firm ImmunoGen (IMGN - Get Report), a stock that's soared 36% since Cramer first got behind it in December 2012 and 18% since he last spoke with Junius in late February. Junius provided an update on his company's great cancer drug, Kadcyla, which received approval in February. He said the drug has been performing very well and the company's partners are excited about its prospects. Kadcyla is only getting started, Junius noted, and sales in Europe have yet to begin and other indications for the drug are possible. Junius also responded to recent negative comments surrounding ImmunoGen's four other compounds under development, and in particular concerns over their toxicity in patients. He explained that as part of drug development, dosages are increased to determine at what level they are intolerable to patients, and then the dosages are dialed back to acceptable levels. ImmunoGen's new drugs are no more toxic than anything else on the market, he noted, and, in fact, they're far better. When asked about the company's cash reserves, Junius said ImmunoGen has plenty of cash for development but may consider more when their drugs are reaching the approval process. By then, however, there will be a lot more data on what those drugs are capable of doing, so finding additional funding will likely not be a problem. Cramer said he felt the negativity surrounding ImmunoGen was unwarranted given its many successes thus far.
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: Johnson & Johnson (JNJ), Walt Disney (DIS), Micron Technologies (MU), Ford (F) and Xerox (XRX). Cramer said that Micron and Xerox were both technology stocks and he'd sell Xerox and add a defense stock in order to be properly diversified. The second portfolio's top holdings included: Apple, BP (BP), Carlyle Group (CG), Duke Energy (DUK) and AT&T (T). Cramer said this portfolio was perfectly diversified. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
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