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Cramer told "Mad Money" viewers Wednesday that they should think about buying
, a diversified industrial company that serves a set of niche markets by making products including water meters, pumps and measuring instruments.
These products are important and business is sound, he said. But it's not the only reason to buy Roper.
The company was added to the S&P MidCap 400. Cramer said that he and his research team have taken a look at the last 19 stocks to be added to this index, going all the way back to October 2003.
They found that since being added, the stocks for the most part have had a sustained, gradual move upward. Moreover, they have produced an average 34.66% return.
There have been three exceptions:
. But Cramer said that 16 stocks up and three down is still a good trend.
Cramer says that nobody wants to own large-cap stocks these days, despite media noises to the contrary, because mid-caps represent growth.
Turning back to Roper, Cramer said that he likes the fact that the company doesn't try to expand its target market, but just captures more share in the markets they currently serve.
It's cheaper for a company to sell more of a product it already sells than to design and market a whole slate of new products, he said.
Plus, he said that Roper has a great radio frequency identification (RFID) company.
For a pure play on water, he told a caller that he would rather go with
, which he owns for his
ActionAlerts PLUS charitable trust.
Drug abuse is bad, but we can make some money off it, Cramer said. And for those who have been paying attention to the news, they know that one of the most abused prescription drugs is OxyContin.
There is an "alarming trend of abuse among young people," and he said this has an effect on the market.
Cramer said there's a new drug on the way that should be the next OxyContin. And unlike OxyContin, it's made by a publicly traded company that he has ordained the new "best-of-breed pain pill company."
The stock is
( PPCO), which makes OxyMorphone in addition to some other good proprietary drugs.
The expectations for this drug are low, but Cramer believes that it's a potential blockbuster based on recent studies that showed patients experienced a significant reduction in pain compared with patients who took placebos.
And he said that patients who had developed a tolerance to other opiate-based pain killers responded well to OxyMorphone.
Maybe You're Diversified
"Diversification is the only free lunch," Cramer said. So viewers called him to play "Am I Diversified?," a segment during which they tell him which stocks they own and he says whether the portfolio's diversified enough to help protect them against different sectors and stocks moving lower.
The first caller said he owned
TD Ameritrade Holding
Cramer blessed this portfolio as diversified because it has a tech company, a finance stock, a refiner, a utility and a drug company. But he said he would swap out of Southwest Water and buy Aqua America.
Cramer did not bless a portfolio with
, saying that Sasol and Chesapeake are both energy companies.
The next caller also had overlap because he owned two energy plays,
The caller also had
Cramer said he would sell ConocoPhillips and keep Halliburton, a stock that he owns for
The final caller had two mineral plays,
Cramer said he would sell Ivanhoe and pick up a health care play in order to round out a portfolio that also included
( IPSU) and
He finished off the show with emails from viewers, including one from a woman who wanted to know if
( OO) was a buy because of a potential short squeeze.
Cramer said that he likes Oakley -- which he featured positively on
Tuesday's show -- because he believes the stock will move higher after the company restates earnings, not because 25% of the shares trading are short.
He also said that
Archer Daniels Midland
is his ethanol pick, but warned that the stock has move higher and that it might not be a good idea to buy at these levels.
Cramer was bullish on
Matsushita Electric Industrial
XM Satellite Radio
Level 3 Communications
Cramer was bearish on
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At the time of publication, Cramer was long Aqua America, Halliburton, TD Ameritrade, UnitedHealth Group and Qualcomm.
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