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Editor's note: The following is a wrap-up of "Mad Money" that originally aired on June 30. The show was rebroadcast Wednesday evening
Jim Cramer laid out strategies for profiting in the stock market on aging Baby Boomers on
"Mad Money." He recommended shares of companies that develop drugs for hypertension, lasers for surgery and orthopedic implants, and discussed possible plays in assisted living, casinos and insurance.
In the drug sector, Cramer mentioned companies that, while not currently his favorites, might show promise over three to five years because of treatments for hypertension, impotence and osteoporosis. For hypertension, he mentioned
"The Boomer market for hypertension drugs hasn't even begun to blossom," Cramer said, adding that he had no favorite pick in the class. "It really could be any of the big pharmaceutical companies. So do what I do when I look at drugs: count prescriptions."
For erectile dysfunction, Cramer suggested considering Pfizer, Lilly and Glaxo, and mentioned several of the above stocks as possible plays on osteoporosis.
For cholesterol, Cramer praised
( SGP), which sells Vytorin, saying the stock "makes a lot of sense" around $20.
In response to a caller's question, Cramer acknowledged that hospitals are gaining pricing power over drug companies, but said that alone doesn't make the stocks buys.
"There are other considerations, government, labor, and that makes it so
is too difficult to recommend."
Cramer felt similarly about generic-drug makers, saying: "I have found over and over again that margins can be cut to shreds to when too many companies can come in and make the same products. Triple sell, I think those stocks are dangerous."
To capitalize on Boomer vanity, Cramer urged viewers to consider companies that make lasers for cosmetic surgery, specifically
"These three companies pretty much have the market cornered right now," Cramer said, although he warned that they are "all little companies that could be displaced in moments by a bigger player."
Cramer also highlighted
as dental plays. "There will be ups and own in these stocks but the bottom line is they're pure plays on teeth and I have to tell you, unless you start growing a third set, you're going to need them."
For old-fashioned cosmetics, his picks were
Procter & Gamble
, calling the latter "the pure hair-color play." He would buy Alberto-Culver before
Responding to a caller, Cramer said
( WFMI) qualifies as a Boomer play because its wares help prevent disease. "While it's not a pure play on Baby Boomers I think it works and works large."
Cramer was long-term bullish on orthopedic implant makers
"I'm not incredibly enthusiastic about the sector in the near term, but you cannot argue with the huge market that's going to be created by 78 million Baby Boomers for orthopedic devices," he said. While the "long-term picture is strictly back up the truck," Cramer advised viewers to "let the pricing come down then pick among the rubble."
Cramer said higher-end assisted living companies like
Sunrise Senior Living
( SRZ) could be winners as the population ages. He preferred Sunrise to
( BEV), which is too dependent on the government.
Because its customers are wealthy, Sunrise "can't be brought low by big government deciding to cut Medicare/Medicaid. It's also less likely that Sunrise will have quality problems because of the big bucks laid down by its wealthy clients."
Cramer said Baby Boomers will want to gamble and mentioned
( HET) and
as possible ways to profit. He also praised
as cruise plays.
"This stuff can also change pretty rapidly," he said. "Stay abreast of where the Boomers are moving and what they're doing on their vacations by watching your friends."
Among insurers, Cramer spoke well of
Nationwide Financial Services
have interesting lines.
But Cramer reiterated that his favorite insurance stock is
, which he said is "uniquely poised to capture the
Baby Boomer market from every angle."
At the time of publication, Cramer was long UnitedHealth Group.
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