Jim Cramer's Stop Trading! Better Biotech

In the midst of a rout, Cramer notes Amgen's strength.
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In the midst of a market rout, a gainer like

Amgen

(AMGN) - Get Report

is worth investigating, Jim Cramer said on

CNBC's

"Stop Trading!" segment Friday.

"This is the first day Amgen hasn't gone down," Cramer noted. "Amgen now has a regular pharma multiple without any of the generic competition of the pharmas. The multiple contraction has been extraordinary in biotech. They're now trading like the

Pfizers

(PFE) - Get Report

and the

Mercks

(MRK) - Get Report

."

Elsewhere, Cramer noted that

Microsoft

(MSFT) - Get Report

and

Cisco

(CSCO) - Get Report

weren't trading badly Friday. "Perhaps you can divine from the tea leaves and say, 'They let us down, maybe they're trying to put in a bottom.' "

In retail, Cramer said, mid-tier department stores like

J.C. Penney

(JCP) - Get Report

and

Kohl's

(KSS) - Get Report

look like buys. "There's a trade going on which says people don't want to buy as much expensive stuff, but also don't want to go to

Wal-Mart

(WMT) - Get Report

."

Cramer praised

Rite Aid

(RAD) - Get Report

, noting increasing hedge fund interest in the name and "limited downside" at roughly $4.50 a share.

Regarding gold stocks, "This is day one of a selloff. Have you ever seen a group recover from day one of a selloff?"

Cramer was bearish on

Expedia

(EXPE) - Get Report

, citing a "horrible" quarter. "They have a bad business model. They're really terrible."

At the time of publication, Cramer was long Microsoft.

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