RealMoney Radio Mailbag: Steer Clear of Merck
Editor's Note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.
Is Merck (MRK) - Get Report a buy here below $28?-- Erica from New Jersey
James J. Cramer:
I don't believe Merck is a buy because the downside from Vioxx litigation can't be quantified, and there is no turnaround in sight for the situation.
There are plenty of good pharma and biotech companies out there, so it just doesn't make sense to toy with something that could go so wrong.
Is your position in Cendant (CD) a trade or an investment?-- Robert from South Carolina
James J. Cramer:
Cendant, which I own for
ActionAlertsPLUS, my charitable trust, is most definitely an investment, and not only because of my trading restrictions.
While the company has had some serious problems in the past, I believe the future for Cendant will be bright. I intend to hold the stock as long as the fundamentals continue to improve.
Cendant has leading positions in travel and real estate, and management is selling off non-core assets to make the company easier to understand, removing a huge obstacle for investors.
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