Click here for an archive of Cramer's "Mad Money" Recaps.
There is a tug of war for dollars on Wall Street this week. The tug of war is between technology and biotech. Technology won on Monday night. But Tuesday night belonged to biotech.
On the heel of Tuesday's news, the growth dollars are heading to biotech after
reported great second-quarter numbers after the closing bell.
But Jim Cramer told his "Mad Money" viewers on
that biotech will do especially well in the future -- especially if investors compare them with the Big Pharma stocks of today.
Investors also will be looking to put money to work in
( GENZ). In fact, Cramer said, he never wants to hear about
"We want to be looking for stocks that will be in our kids' medicine cabinets," he said. Pfizer and Merck have the stuff that is in cabinets today, he said.
What's more, Cramer said that Big Pharma doesn't innovate anymore. They just repackage stuff so that they can squeeze out every last dime. The biotech companies are the future of pharmaceuticals, he said.
"Get into biotech now to make money off of lifesaving drugs," Cramer concluded.
Motorola CEO Talk
( MOT) reported a great second quarter after the bell on Tuesday night. It reported better-than-expected earnings and sales. But the stock sold off after hours. Cramer talked with CEO Ed Zander about the quarter and about the company's future. Zander outlined a host of products that will continue to keep the momentum going at Motorola.
After chatting with Zander, Cramer said that the stock ran up in anticipation of great numbers. Cramer now thinks that the stock might pull back, however. And if it does, he said that he would definitely be a buyer. Cramer also pointed out that Motorola would be meeting with analysts next week to discuss business as well. Finally, if Motorola had reported its numbers by itself on Tuesday -- without
( LU) also reporting -- the stock would have been up on Tuesday night. Instead, it was down. Cramer believes weakness in Motorola stock is a gift, he said.
The 'Lightning Round'
Cramer was bullish on:
Cramer was bearish on:
Cadence Design Systems
Sierra Pacific Resources
Cramer also spoke to
Andy Bryant on Tuesday evening. Cramer asked the chief financial officer about the weaker-than-expected second-quarter margins that Intel reported after the bell. Bryant said he believes margin weakness can be corrected and that Intel will post margins of about 60%, plus or minus, in the third quarter.
As for market share, Bryant believes Intel gained a half-point to a point over
Advanced Micro Devices
during the quarter. Cramer agreed that margins were weaker than what he was looking for, but that Intel should do fine during the rest of the year as well.
Finally, Cramer spoke to Lucent CEO Patricia Russo, who said she was pleased with her company's quarter. The company posted better-than-expected earnings, turned in sales that grew 7% year over year, and showed growth both domestically and internationally.
But Cramer said this was a "show-me" quarter for the New Jersey company. Lucent showed investors some things, Cramer said, but it didn't show other things, he said. Bottom line? Lucent is a hold, he said.
At the time of publication, Cramer was long Intel, Lucent, Motorola and Yahoo!.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict."