A Different Kind of Opportunity

Take a look at what's happening with Abbott Labs today. After witnessing the action, Cramer's got a new strategy for reacting to those nasty FDA letters.
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When you think opportunity in the stock market, think about what happened recently with Abbott Labs (ABT) - Get Report. Here's one of America's premier growth companies that has a history of rewarding its shareholders. A couple of weeks ago, it got one of those FDA letters about one of its labs not being in tip-top shape. I know I was freaked out about it. So were some of the analysts. The thing got hammered. They took it down to 36.

Two weeks later, and look at this stock! It is ramping. You want to tell those buyers that they should remember that nasty compliance letter that Abbott got? You want to remind them about what sent the stock down 20% from where it is now, to a fantastic place to buy?

These FDA letters seem, at times, like the cost of doing business for the major pharmaceutical players. Next time I see one of these, I am holding my nose and buying the stock.

As I should have when Abbott got clocked last time.

Random musings:

I was speaking this morning with

Rick Auletta

, our terrific vice president of sales, about a law firm I know getting a group rate because so many people now take us. He was more than willing to make a deal. You have a group that wants us? Email Rick at

rauletta@thestreet.com. This guy gets it!

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.