Jim Cramer told viewers of his "Mad Money" TV show Monday that he has done an about-face on NitroMed ( NTMD) and is now bullish. NitroMed, which Cramer recommended selling into hype this summer after BiDil, the company's treatment for congestive heart failure in African-Americans was approved by the FDA, is now too disliked, he said. About one-third of the company's float has been sold short, which is "staggering," said Cramer. The stock has dropped from about $24 in July to $16.76 as of Monday's close. The bears are now being piggish, said Cramer. Wall Street is expecting $200 million to $250 million in revenue from BiDil in 2008. But a survey released Monday evening finds BiDil is likely to have revenue of $637 million. That's a huge difference, said Cramer. Also, the drug, which had been getting about 50 to 70 prescriptions a day, is now seeing 300 to 400 prescriptions a day, according to the latest data. "BiDil doesn't need to do well for NitroMed to make you a lot of money," said Cramer. "It just needs to do better, and that's exactly what I see happening."
Hain, BabyCramer is bullish on Hain Celestial ( HAIN) after reading a story last week in USA Today about how the level of pesticides in children fell dramatically once the children began eating organic food. Sales of organic baby food are up 57% over the past four years, said Cramer. Hain's line of organic baby food, Earth's Best, grew 23% last year, he said. Hain's organic baby food is sold in Whole Foods Market ( WFMI) and Wild Oats Market ( OATS). Hain is a great way to have some food exposure, said Cramer. Also, the holiday season historically has been the best-performing period for Hain's stock each year.
Alternative CurrentDistributed Energy Systems ( DESC) is the "best little alternative energy company you've never heard of," said Cramer. Distributed Energy on Monday reported much better-than-expected revenue of $12.3 million vs. expectations of $9 million, said Cramer. Gross margin was 2% better than expectations, he said. Distributed Energy is benefiting from two big trends, distributed power and on-site hydrogen power generation, and Cramer believes the company will reach profitability ahead of Wall Street's expectations. After the hurricanes that struck Florida and the Gulf Coast this year, "everybody who needs a reliable source of power is at least thinking about installing a distributed power system," said Cramer. Furthermore, higher energy prices have made the economics of teh company's on-site hydrogen power systems more attractive. The company even has some exposure to solar and wind power, he said. Distributed Energy has lots of room for growth, said Cramer. "This is not going to be the last good quarter. It's the first great one!"
I'll Be DardenDarden Restaurants ( DRI) CEO Clarence Otis joined Cramer to talk about his company's strong October sales, particularly at Olive Garden. Otis said Olive Garden is "working on all cylinders." The key, he said, has been having a menu that people want and operating the restaurant efficiently. "You're too modest," said Cramer. "Everybody else told me that this was a really bad quarter." Otis said his company expects to perform no matter what. That said, he is seeing a "solid consumer."
Lightning RoundBullish Cramer was bullish on Nike ( NKE), UnitedHealth Group ( UNH), Hansen Natural ( HANS), CMS Energy ( CMS), American International Group ( AIG), Eaton ( ETN), Chesapeake Energy ( CHK), Darden Restaurants ( DRI), Yum! Brands ( YUM), SCP Pool ( POOL), Syneron Medical ( ELOS), IntraLase ( ILSE), China Medical Technologies ( CMED), Advanced Micro Devices ( AMD), Intel ( INTC), Texas Instruments ( TXN), Wachovia ( WB), Microsoft ( MSFT), Countrywide Financial ( CFC), EMC ( EMC) and Broadcom ( BRCM). Bearish Cramer was bearish on TiVo ( TIVO), Navistar International ( NAV), P.F. Chang's China Bistro ( PFCB), FoxHollow Technologies ( FOXH), American Power Conversion ( APCC) and Bebe stores ( BEBE). *For all you home-gamers, a 'mon-back opportunity means Cramer would back up the figurative truck and load up on a stock.
Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|
|Check back for more of Cramer's Rules|