This article was originally published Jan. 23.
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"There are some signs of health in this market," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
Despite the down day in the
Dow Jones Industrial Average
, he found four signs of life.
Cramer said the first sign came from the technology sector. While
missed its earnings by a mile, others like
confirmed the pattern set by
Research In Motion
Cramer said when it comes to tech, it's either hot or it's not, in or out, up or down.
Cramer said the second sign is oil. "When oil goes up, the markets go up," he said, noting that
alone accounts for 5% of the S&P 500 index.
The third sign comes from pharma. He said the deal between
could fetch as much as $60 billion, and spark a wave of other consolidations.
, another pharma name, was also up 38% on news of FDA approval for human trials of the first ever embryonic stem cell-based treatment.
Cramer said he's also a fan of
The final sign of life was
, both of which are breaking out to the upside. Cramer said Goldman may soon find itself in a position to raise capital and pay off the TARP money it borrowed from the government.
All of these signs, said Cramer, leave him cautiously optimistic for next week's action.
Cramer's Shocker Stocks
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Cramer said when big pharma needs growth, it turns to little pharma.
So in light of Pfizer's bid for Wyeth, Cramer said it could be
who has already stated it's on the hunt for smart acquisitions.
That acquisition target, said Cramer, could be
, a company in which Abbott Labs is already in partnership. He said both companies are in the laboratory diagnostic business, making the fit even better.
Celera is appealing to Pfizer because it specializes in personalized medicine that matches treatments to patients. This personal service requires lots of diagnosis, along with frequent monitoring and reassessment.
He also noted the company's KIF6 genetic test to assess cardiac risk factors as another positive factor.
Another potential candidate for Abbott Labs would be
, a stock Cramer recommended on Dec. 19. But he said with shares up 24% since that mention, he'd now be a seller of Sequenom and swap into Celera.
Cramer said Celera trades at 41 times its earnings, and while it could deliver upwards of 50% earnings growth in 2009, he'd be reluctant to recommend the name except on "Speculation Friday." He advised using limit orders only and not use market orders to drive up the price.
Outrage of the Day
Cramer once again sounded off against Treasury Secretary designate Tim Geithner and former Merrill Lynch CEO John Thain. He said that if he were a prosecutor, he'd indict both men, Thain for malfeasance and Geithner for tax evasion.
Cramer said it's unfathomable how Thain could spend $1.2 million on an office while his firm is literally falling apart in front of his eyes. And, he said, it's totally unacceptable that Geithner "forgot" to pay his taxes.
Yet both men, he said, appear to be above the law and are untouchable. Anyone else, he said, would already be in prison, but Thain gets to walk away with billions while Geithner gets to go to Washington.
Cramer said these men should be cell mates with former
CEO Dennis Kozlowski, who is currently serving 8 to 25 years.
Am I Diversified?
Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included
Cramer called this portfolio "made in heaven."
The second caller's top holdings included
Energy Transfer Partners
Cramer said he could argue that Duke and Energy Transfer Partners are too similar, but since he likes both companies, he's loath to throw either out.
The third caller had
Nordic American Tanker
Kinder Morgan Partners
as their top five stocks.
Cramer said he loves this portfolio for its great dividend yields.
The fourth caller's portfolio included
Cramer called this portfolio a difficult one. He said that he'll never recommend an airline and with two entertainment companies. He did not bless this portfolio.
Cramer was bullish on
Research In Motion
He was bearish on
International Game Technology
Las Vegas Sands
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At the time of publication, Cramer was long Bristol-Myers.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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