Click here for an archive of Cramer's "Mad Money" recaps.
Editor's note: Jim Cramer's "Mad Money" will air on CNBC at 9 p.m. and midnight EST during the Winter Olympics. Check back on TheStreet.com and RealMoney.com after 10 p.m. for the nightly recap
Jim Cramer's favorite epidemic just happens to be his favorite way to make money -- obesity. "It's never going to go away," Cramer told viewers of his "Mad Money" TV show on Monday.
The way to profit off the fat-fighting craze, Cramer said, is through the makers of weight-loss drugs. But because "we are a vain society," investors should seek drugs that "make people look good now."
A hugely popular drug is Acomplia, made by
, but Cramer doesn't recommend that stock since the impact of even a blockbuster drug on one huge company won't necessarily be a stock-mover.
Instead, Cramer likes
, which has a drug about to enter Phase III testing and "should be the best thing on the market." It's currently called APD-356, but Cramer said "you can think of it as the new Fen-Phen without the heart attacks."
When Arena comes out with its version of Fen-Phen, Cramer said it should become the market leader. "Unless it blows up, Arena has a great risk/reward," he said.
Cramer added that Arena is also working on a "phenomenal" diabetes drug with
Johnson & Johnson
, and he could "easily" see the stock hitting $20 this year. (It closed Monday at $15.02).
A viewer called in to ask Cramer whether the Food and Drug Administration was hyper-sensitive to stimulant drugs at the moment. Cramer said the FDA was responding to pressure because a lot those drugs were being used by children.
But the issue with Fen-Phen was "the nasty problem" of people getting killed, a problem that Cramer doesn't forsee with Arena's drug. "It's Fen-Phen without the killer app," he said.
Another caller asked Cramer if there was a way to play the gastric bypass popularity. Cramer recommended
, which he says has had quite a run, but he's not willing to yet "ring the register."
A Sporting Chance
As viewers - and investors - watch the Winter Olympics, Cramer reminded everyone that it's too late to make money on the event now. To make any money on sports, you need to be looking ahead, specifically at soccer's World Cup or the 2008 Olympics.
For those events,
is dead in the water. "Sell it right now," Cramer said, adding that the BRIC nations (Brazil, Russia, India and China) are the future of athletic footwear.
And for that future, Cramer said the stock to choose is the German apparel maker
, whose integration of merger partner Reebok is coming sooner than expected. Cramer said that while Nike is the unchallenged king of shoes in the U.S., this country isn't offering a growth market like the developing world, where Nike is "way out of its depths."
Cramer said Adidas has 50% of the German market, so this year's World Cup will essentially be their event, and they're already a sponsor of the 2008 Olympics.
"Adidas is to
as Nike is to
," said Cramer.
Another caller asked if Cramer liked sports apparel maker
as a likely takeover candidate. But Cramer couldn't bless the stock because of the company's recent sluggish performance.
Cramer also said he still likes
( UARM), but their quarter wasn't that good, "so we can't really get in bed with it."
It's Just the Motient
Cramer said he was willing to break his general rule on not recommending stocks that trade on the Pink Sheets because
has received some "serious" government handouts and investors should always look to buy stocks that are getting fed by the government trough.
Cramer said Motient is now in a position where it owns more of the electromagnetic spectrum than anyone except for
. With spectrum in short supply and high demand, Motient is in an excellent position. Cramer did warn that investors have to be careful trading Pink Sheet stocks. "It's risky by definition," he said.
Here Comes the Sun
Cramer said investors have had a good run with some solar power-based companies but now that they're "cratered" here, do we wait or do we buy?
Sanjay Shrestha, managing director of equity research at First Albany Capital, said there may be more of a pullback in such stocks like
Energy Conversion Devices
( ESLR) and
but that the long term still looks attractive, in part because of falling costs.
Cramer was bullish on:
Cramer was bearish on
( OSIP) and
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by
At the time of publication, Cramer was long Intel and Lucent.
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."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.