
Jim Cramer -- What Allergan Can't Say Will Rule the Day Wednesday
TheStreet's Jim Cramer will be keeping a close eye on Allergan (AGN) - Get Report Wednesday when the pharmaceutical giant releases its third quarter results before the opening bell, but the information investors are most interested in will not be forthcoming.
"This is going to be a difficult quarter because obviously they can't talk about any talks they've had with Pfizer (PFE) - Get Report , and that's really the elephant in the room," Cramer said, discussing the much-discussed merger talks between the two. A tie-up between Allergan and Pfizer could be the biggest M&A deal of 2015, creating a pharmaceutical behemoth with a market value of about $330 billion.
Cramer thinks Allergan is going to post good numbers. "I think they're going to say, 'Look we haven't been able to explain exactly what the company looks like yet because we haven't offloaded our generic business to Teva.' So therefore, I think that people are going to be disappointed because they can't give you the guidance they would like because they haven't offloaded the Teva, which is $40 billion worth, and they're going to be disappointed that you can't pin them down on Pfizer."
Analysts are expecting Allergan to post earnings of $3.19 a share on $4.03 billion for the quarter.
Cramer advises investors to buy Allergan if the stock comes down, "I'm not rooting for disappointment, I think the company is terrific," he said, "but I am saying people are going to be let down that they can't talk about the divestiture yet of the generics, and they can't talk about Pfizer, so people want to hear those things and they're not going to hear them, so therefore I think they'll sell no matter how good the quarter is."
The Dublin-based company has topped analysts' expectations for eight of the last nine quarters. Allergan is a core holding in Jim Cramer's Action Alerts PLUS charitable trust portfolio, and shares are up nearly 22% year-to-date.
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS was long AGN.








