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NEW YORK (
) -- "We're on our way to Dow 12,000," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
He said while the bears continue to argue that the economy is getting worse, things are indeed getting better, much better. Cramer took a moment to rebut each of the bears' arguments.
1. Sustainability. Cramer said the bears continually argue that the market rally just isn't sustainable. But in reality, he said you just don't get these kind of moves in the industrial stocks if the rally is not sustainable. Indeed, he said the rally is multi-year sustainable.
2. Housing. Cramer said the bears argue that foreclosures are still mounting. But in reality, he said, we're headed for a housing shortage in 2011. Cramer said once job growth returns, foreclosures will disappear. He said it wouldn't be possible for the big banks to rally if foreclosures were still an issue.
. Cramer said the bears argue that the Federal Reserve will tighten rates and ruin everything. But he said, "Ben Bernanke knows what he's doing" and "we will not have a double-dip recession."
4. Low Volume. The bears argue that the rally has been on low volume, and therefore can't be for real. Cramer said that the markets have had low volume for 4,500 Dow points, and he hopes the low volume keeps coming.
5. Europe and China. Cramer argued that what's bad for the euro is ultimately good for the dollar. He said Europe's problems are not big enough to matter, and China is definitely not slowing down.
6. Washington. The bear's final argument is that legislation and regulation will crush the big banks. But Cramer said he's heard the new bills are actually a win for the big banks.
Cramer said all of these "arguments" are bogus, and provide investors with a great opportunity to buy into the rally at a great price. "Keep up the faith," he said.
In the "Executive Decision" segment, Cramer followed up with Daniel Junius, president and CEO of
, one of many biotech companies waging the fight against cancer. Cramer last recommended ImmunoGen in November, 2009 as part of a series of stocks in the cancer war.
Junius said ImmunoGen's TDM1 breast cancer drug is still seeing positive results in its trials, and could become a $2 billion to $5 billion blockbuster if approved by the Federal Drug Administration. He said TDM1 could receive approval as early as the beginning of 2011 thanks in part to the FDA accelerating the approval due to the drug's continued positive results.
Junius also said that the FDA has granted orphan drug status to another of its drugs, presently named ImmunoGen 901, which is aimed at fighting lung and ovarian cancers. Junius said that 901 may still be three or four years away from approval, but the orphan status affords the company additional protections against competition.
Junius said that all of the positive news surrounding InnunoGen's products helps to validate the technology the company uses to manufacture them. While he did not rule out the possibility of needing additional financing while these drugs are still in development, he said that the company is in great shape and does not foresee the need for secondary offerings.
Cramer continued his support for the stock.
Getting a Sunburn
In the Thursday "Sell Block" segment, Cramer said it's time to ring the register on teen retailer
, a stock that's had an amazing 256% run over the past 12 months.
Cramer said after recommending competitor
( HOTT) just a few days ago, he simply can't make a case for owning shares of Pacific Sunwear after the monster move it's already had. He recommended swapping out of Pacific Sunwear and into Hot Topic.
Pacific Sunwear reported a loss of 26 cent a share during its most recent quarter, on a 17% decline in revenue and declining same store sales. The company admitted its in the middle of a turnaround, but Cramer said he can't justify owning PacSun while so many others retailers are producing positive results.
Cramer said the company is doing everything right, closing underperforming stores and localizing its merchandise while adding more private label items. But he said there's no indication how long the turnaround will take to complete.
Simply put, Pacific Sunwear is not a growth story, said Cramer, and in this market, you need growth.
Cramer followed up on a stock that stumped him earlier in the week. He said that
recent decline was due to two scathing blog posts questioning the value of the company's holdings.
Cramer said he's siding with management on the value of its holdings, but fell short of recommending the stock. "Stick with the better known oil and gas plays," he said.
Cramer said that
does not do well when the economy is recovery. He recommended swapping into
, which has more growth.
Cramer told a viewer that
will likely have a monster quarter, but no one seems to care, and that he's not a fan of
, but would be a buyer of
Finally, Cramer told a viewer that after taking some profits in
, a stock which he owns for his charitable trust,
Action Alerts PLUS, he would wait for a pullback before buying back in.
Cramer was bullish on
Goodyear Tire & Rubber
He was bearish on
-- Written by Scott Rutt in Washington D.C.
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At the time of publication, Cramer was long JPMorgan Chase, Visa, Apple.
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