This Day On The Street
Continue to site
ADVERTISEMENT
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

Jim Cramer's Mad Dash: The Fed Is Overlooking Biotech Growth

NEW YORK (TheStreet) -- Shares of Intercept Pharmaceuticals (ICPT - Get Report) are up over 30%, but are off yesterday’s after-hours highs when the stock soared 66% on a positive earnings report. 

On CNBC’s "Cramer’s Mad Dash" segment, TheStreet’s Jim Cramer, co-manager of the Action Alerts PLUS portfolio, reminded investors that Federal Reserve chair Janet Yellen recent called small-cap and mid-cap biotech stocks overvalued. 

Read More: The Keystone XL Pipeline Springs Another Leak

However, Intercept appears to have a cure for nonalcoholic steatohepatitis, a form of liver disease. 

The preliminary results are better than many had expected, Cramer said. 

“When you have a great orphan drug that does do something special, you can have this kind of move,” he added, referring to the jump in the stock price. 

Large-cap pharmaceutical companies aren't the ones generating growth; biotech companies are. The Federal Reserve was "misplaced" calling the industry overvalued, Cramer concluded.

-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Read More: Kinder Morgan Consolidation: What It Means for MLPs

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ICPT $255.20 0.00%
AAPL $130.28 0.00%
FB $79.19 0.00%
GOOG $532.11 0.00%
TSLA $250.80 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs