Editor's note: Jim Cramer's "Mad Money" will air on CNBC at 9 p.m. and midnight EST during the Winter Olympics. Check back on TheStreet.com and RealMoney.com after 10 p.m. for the nightly recap. Jim Cramer's favorite epidemic just happens to be his favorite way to make money -- obesity. "It's never going to go away," Cramer told viewers of his "Mad Money" TV show on Monday. The way to profit off the fat-fighting craze, Cramer said, is through the makers of weight-loss drugs. But because "we are a vain society," investors should seek drugs that "make people look good now." A hugely popular drug is Acomplia, made by Sanofi-Aventis ( SFY), but Cramer doesn't recommend that stock since the impact of even a blockbuster drug on one huge company won't necessarily be a stock-mover. Instead, Cramer likes Arena Pharmaceuticals ( ARNA - Get Report), which has a drug about to enter Phase III testing and "should be the best thing on the market." It's currently called APD-356, but Cramer said "you can think of it as the new Fen-Phen without the heart attacks." When Arena comes out with its version of Fen-Phen, Cramer said it should become the market leader. "Unless it blows up, Arena has a great risk/reward," he said. Cramer added that Arena is also working on a "phenomenal" diabetes drug with Johnson & Johnson ( JNJ - Get Report), and he could "easily" see the stock hitting $20 this year. (It closed Monday at $15.02). A viewer called in to ask Cramer whether the Food and Drug Administration was hyper-sensitive to stimulant drugs at the moment. Cramer said the FDA was responding to pressure because a lot those drugs were being used by children. But the issue with Fen-Phen was "the nasty problem" of people getting killed, a problem that Cramer doesn't forsee with Arena's drug. "It's Fen-Phen without the killer app," he said. Another caller asked Cramer if there was a way to play the gastric bypass popularity. Cramer recommended Inamed ( IMDC), which he says has had quite a run, but he's not willing to yet "ring the register."
A Sporting ChanceAs viewers - and investors - watch the Winter Olympics, Cramer reminded everyone that it's too late to make money on the event now. To make any money on sports, you need to be looking ahead, specifically at soccer's World Cup or the 2008 Olympics.
It's Just the MotientCramer said he was willing to break his general rule on not recommending stocks that trade on the Pink Sheets because Motient ( MNCP) has received some "serious" government handouts and investors should always look to buy stocks that are getting fed by the government trough. Cramer said Motient is now in a position where it owns more of the electromagnetic spectrum than anyone except for Cingular. With spectrum in short supply and high demand, Motient is in an excellent position. Cramer did warn that investors have to be careful trading Pink Sheet stocks. "It's risky by definition," he said.
Here Comes the SunCramer said investors have had a good run with some solar power-based companies but now that they're "cratered" here, do we wait or do we buy? Sanjay Shrestha, managing director of equity research at First Albany Capital, said there may be more of a pullback in such stocks like Energy Conversion Devices ( ENER), Evergreen Solar ( ESLR) and SunPower ( SPWR - Get Report) but that the long term still looks attractive, in part because of falling costs.
Lightning RoundBullishCramer was bullish on: Apple ( AAPL - Get Report), ConocoPhillips ( COP - Get Report), Dominos Pizza ( DPZ - Get Report), Allegheny Tech ( ATI - Get Report), Nighthawk Radiology ( NWHK), Sirenza Microdevices ( SMDI), ENGlobal ( ENG - Get Report), Schlumberger ( SLB - Get Report), Progenics Pharmaceuticals ( PGNX - Get Report), Citi Trends ( CTRN), Amgen ( AMGN), Medicis Pharmaceuticals ( MRCS), Hartford Financial ( HIG), MetLife ( MET), Prudential ( PRU), Sysco ( SYY), Fortune Brands ( FO), First Data ( FDC), Marchex ( MCHX), Labranche ( LAB), Genentech ( DNA), Genzyme ( GENZ), Gilead ( GILD), and Starbucks ( SBUX).
BearishCramer was bearish on Papa John's ( PZZA), Cymer ( CYMI), Lucent ( LU), OSI Pharmaceuticals ( OSIP) and International Speedway ( ISCA) Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.