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Cramer's 'Mad Money' Recap: Schering-Plough's Disastrous Day

Cramer says he blew it on the drugmaker after its blockbuster drug fails to pass muster.

Click here for an archive of Cramer's "Mad Money" recaps.

"I know I have let down my viewers," Jim Cramer told viewers of his "Mad Money" TV show Monday.

He apologized to viewers for standing behind



, a stock which he owns for his charitable trust,

Action Alerts PLUS.

3 Stocks I Saw On TV

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The stock lost nearly 26% of its value on Monday after the company's anti-cholesterol drug was harshly criticized at a cardiology conference.

Cramer, who got behind Schering early largely because of company Chairman and CEO Fred Hassan, welcomed Hassan to the show to ask him what the company was going to respond to the bad news.

Hassan defended the company, saying Schering's products and outlook remains the same. He was frustrated that a scientific forum was not conducted to evaluate the drug.

Hasssin said that he still stands behind Vytorin, although the company has pulled much of the advertising for the drug while it reevaluates the situation.

Regarding Schering's likely earnings hit later this year, Hassan said he is focused on shareholder value and "will take tough actions" to remain profitable.

He noted that Schering is not a one-drug company, noting the strength in the company's other drugs, Remicade and Organon.

Asked to comment on the company's reluctance to offer earnings guidance, he said that Schering's philosophy is to always use caution when all of the data is not available, and that includes earnings.

Cramer said that while he felt that Schering's stock is now "ridiculously cheap," he advised investors to do their own homework and decide for themselves whether or not to continue investing in the company.

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TheStreet Recommends

Bank on Peru

Cramer traveled to the country of Peru for his latest international stock pick.

According to Cramer, up to 20% of investors' portfolios should be invested internationally, and he feels Peru is an attractive place to invest because of its 5.4% gross domestic product growth and 2.3% inflation rate.

The Peruvian economy is on fire, says Cramer, due largely in part to a surge in mineral prices around the globe which has helped the resource laden country prosper in recent years.

Cramer recommended


(BAP) - Get Credicorp Ltd. Report

, a Peruvian banking and insurance powerhouse, as a proxy for Peru's growth and prosperity.

The company recently reported 10% loan growth in the past quarter and 40% loan growth throughout all of 2007. "Credicorp is the polar opposite of U.S. banks," said Cramer. "They don't have sub-prime loans down there."

Cramer also likes Credicorp for the company's cheap valuation: It trades at 11.4 times 2008 earnings estimates. He said the company deserves a premium for its excellent management and growth outlook.

A Natural Gas Bonanza

"How would you like to steal some natural gas?" Cramer asked viewers right before recommending

Atlas Energy


as one of the most undervalued energy stocks in the market.

Atlas is not just undervalued, it's "criminally undervalued," he said, adding Atlas has humongous, yet unrecognized, reserves of natural gas in the Appalachian Mountains, primarily in Pennsylvania.

The company currently has 897 billion cubic feet of published reserves, enough to last about 27 years. And the company recently announced the potential of an additional 4.6 trillion cubic feet Appalachia, which has all but gone unnoticed by Wall Street.

Cramer reiterated that this most recent announcement would constitute a five-fold increase in the company's reserves, and even if a fraction of that amount is actually realized, Atlas should profit handsomely.

He estimated the value of the company's Appalachian real estate alone to be worth $386 million, even before taking into account the gas that may be underneath it.

He called Atlas a screaming buy, noting the company's 7.4% dividend yield as a way of "getting paid" until the rest of Wall Street recognizes the potential.

Mad Mail

In this segment, Cramer said he prefers

Enterprise Partners

(EPD) - Get Enterprise Products Partners L.P. Report


NuStar Energy

(NS) - Get Nustar Energy L.P. Report

as the best oil and gas pipeline play.

Sudden Death

Cramer was bullish on

ITT Industries

(ITT) - Get ITT Inc. Report


Cramer was bearish on


(T) - Get AT&T Inc. Report


Sterlite Industries

(SLT) - Get Pacer Salt High truBeta US Market ETF Report


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Lightning Round

Cramer was bullish on

First Solar

(FSLR) - Get First Solar Inc. Report


Kinder Morgan



Kansas City Southern

(KSU) - Get Kansas City Southern Report


CSX Corp

(CSX) - Get CSX Corporation Report


Union Pacific

(UNP) - Get Union Pacific Corporation Report



(FRO) - Get Frontline Ltd. Report



(AFL) - Get AFLAC Incorporated Report


Arch Coal

(ACI) - Get Albertsons Companies Inc. Class A Report


Peabody Energy

(BTU) - Get Peabody Energy Corporation Report


Cramer was bearish on

Suntech Power



ITT Educational

(ESI) - Get Element Solutions Inc. Report



(WB) - Get Weibo Corporation Report





Genco Shipping

(GNK) - Get Genco Shipping & Trading Limited New (Marshall Islands) Report



(RIG) - Get Transocean Ltd (Switzerland) Report



(GOOG) - Get Alphabet Inc. Report


Want more Cramer? Check out Jim's rules and commandments for investing by

clicking here


For more of Cramer's insights during the Lightning Round, click here


At the time of publication, Cramer was long Schering-Plough.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of 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, 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 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, 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, 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 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, 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.