Make no mistake, Cramer still loves all of these companies and their contributions to curing diseases, but Ariad and Achillian should serve as a wake-up call that companies that don't even have products on the market yet can be taken out by the Food and Drug Administration at a moment's notice.
Getting Through the Mumbo Jumbo
In the next installment of his "Survival Guide" of defensive stocks to combat the Washington "mumbo jumbo," Cramer turned his sights on the oil and aerospace stocks, two areas that can transcend politics as they're both in secular growth mode.
Cramer said when it comes to aerospace, don't overthink it, go with Boeing (BA). He said every carrier needs new, fuel-efficient planes and Boeing has a 20-year plan to deliver them thanks to its 10,000-plane backlog.
In the oil patch, Cramer said it's not the majors that are performing, it's the independent names in America's shale fields that are delivering the goods. That's why he's still a fan of names including Gulfport Energy (GPOR) and Cabot Oil & Gas (COG), along with EOG Resources (EOG) and Pioneer Drilling (PXD).Cramer said that any of these stocks can be bought on weakness as Congress works out the details of its latest promise of compromise.
Lightning RoundIn the Lightning Round, Cramer was bullish on Perrigo (PRGO), General Dynamics (GD), 3M (MMM) and Noble Energy (NBL). Cramer was bearish on Green Mountain Coffee Roasters (GMCR), InvenSense (INVN), Lannett Company (LCI), Canadian Natural Resources (CNQ) and Emerald Oil (EOX).
Executive Decision: David JaffeIn the "Executive Decision" segment, Cramer spoke with David Jaffe, president and CEO of Ascena Retail Group (ASNA), purveyors of the Dress Barn, Justice and Maurice's clothing stores. When asked about the retail market overall, Jaffe noted that Ascena is positioned a little differently than most apparel retailers. He said the value end of apparel is doing well, as is the high end, but in the middle customers are feeling squeezed and are more willing to trade down -- which is where Ascena's brands are positioned. Apparel is also being challenged by other categories, Jaffe said. Big items like autos and things for the home as well as electronics seem to be taking precedence over apparel. What the market needs more is a return of consumer confidence, something that the Washington shutdown is only making much worse, he said. Turning to Ascena's brands, Jaffe said its turnaround plans for brands such as Lane Bryant are starting to take effect; meanwhile, e-commerce is also paying off. Ascena can allow customers to do things that online-only retailers can't, such as buying online and shipping to a store or ordering from a store and shipping to a customer's home. These all add value that other stores can't deliver. Cramer said he is a believer in the Ascena story, calling it the right play for the current retail environment.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer said when it comes to the high-multiple Nasdaq stocks, investors need to wait three days and then buy, buy, buy. That's what happened with stocks such as Gilead Pharmaceuticals (GILD), Yelp (YELP) and LinkedIn (LNKD) as money managers stepped aside and the shorts swooped in, only to take things too far. Cramer said this three-day pattern repeats itself time after time and the completion of the patten ended today -- buyers once again caught the shorts off guard, sending all of these names up sharply. The next time investors see big selloffs like what we saw on Monday, Cramer said they need to sit back and start counting. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- 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.