Papa shed some light on his company's recent acquisition of the Irish-based Elan, saying the merger gives Perrigo three things: a start towards global growth, solid licensing revenue and, as has been widely reported, having operations based in Ireland rather than the U.S. affords Perrigo over $150 million in annual tax savings.
Turning to the company's current business, Papa said three trends continue to drive double-digit growth for Perrigo. The first is the trend of prescription drugs going over the counter, the second is the move from national to private label brands and the third is Perrigo's innovation, where the company plans to introduce 75 new products this year, representing $190 million in potential sales.
Cramer called Perrigo a great growth story and one he plans on continuing to follow.
Off the Charts
In the "Off The Charts" segment, Cramer turned to colleague Carly Garner to analyze the next moves in natural gas. Is this year's seasonal low the time to buy, buy, buy? According to Garner, yes!Looking at a daily chart of natural gas futures, Garner noted there's a huge short position being held by large speculators betting that the commodity will sink even lower. However, both the relative strength and William's oscillator, two measures of momentum, point to a huge oversold condition that's ready to snap in the other direction. Garner further noted that, seasonally, this is the best time to buy natural gas as utilities begin stocking up for the cold winter season. It's also worth noting that nat gas held its key level of $3.20 last week, a move that prompted Garner to call that the bottom has indeed been made. How high can gas rally? Garner said there's a ceiling at $3.47, which should easily breached, sending the commodity to the $3.80 or possibly the $4.40 level. Ultimately, Garner even sees natural gas possibly retesting its July highs of $5.20. Cramer said that he's on board with Garner, saying that while the speculators are betting on further weakness, the lower prices continue to force drillers to stop drilling, which will eventually call cause the commodity to snap back in a big way. He said if Garner says that time is now, that's good enough for him.
Lightning RoundIn the Lightning Round, Cramer was bullish on Hanesbrands (HBI), Domino's Pizza (DPZ), General Mills (GIS), Sonic (SONC), Bloomin' Brands (BLMN), Red Robin Gourmet Burgers (RRGB) and Occidental Petroleum (OXY). Cramer was bearish on Simon Property Group (SPG), Callaway Golf (ELY), JA Solar (JASO) and Abercrombie & Fitch (ANF).
Off the Charts, Part 2For his second "Off The Charts" segment, Cramer turned to colleague and chartist Mark Sebastian to examine the CBOE Volatility Index (VIX), more commonly known by its ticker, the VIX, to determine just how much fear is building in the markets. According to traditional logic, any time the markets are rising the VIX should be falling, and vice versa. So closely linked is this inverse relationship that, according to Sebastian, any time the market moves and the VIX doesn't follow, that's the time to jump in. Such was the case in June of this year. The S&P 500 had been falling sharply, and the VIX, as it should, was exploding. But then on June 24, the correlation broke down and the S&P tanked but the VIX didn't make a fresh high. That move signaled the bottom and an excellent time to buy. Flash forward to today when we see the same pattern. The markets have been falling and the VIX has been on the rise, until the latter part of today when the S&P retested its lows but the VIX held firm. According to Sebastian, that signals the markets are done with their selling, at least for now.
Mad MailIn the "Mad Mail" viewer feedback segment, Cramer followed up on OncoMed (OMED), which stumped him on an earlier show. He said that after liking the IPO, he advised selling the tiny biotech. Now, however, Cramer said he likes the company's pipeline as long as shares can hold above their IPO price of $17 a share. Cramer was bearish on Natural Grocers (NGVC), a healthy eating stock that's richly valued at 70 times earnings. He was also not a fan of Immunomedics (IMMU) or Avanir Pharmaceuticals (AVNR), which are up 75% and 85%, respectively, so far this year. Cramer was bullish, however, on Lululemon Athletica (LULU), Radian Group (RDN) and Walt Disney (DIS) as he responded to tweets sent via Twitter to @JimCramer. 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
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.