At the top of his "Mad Money" TV show Tuesday, Jim Cramer reminded viewers of his
Costco ComethAnother buy is Costco ( COST - Get Report), Cramer said. The company is " en fuego," taking share from competitors such as BJ's Wholesale Club ( BJ - Get Report), he said.
Vibrant ViroPharmaCramer headed back to biotech, specifically to ViroPharma ( VPHM). The stock "got trounced" on Tuesday, Cramer said -- it closed regular trading off 9% -- after reporting fourth-quarter earnings. While the company posted "good numbers," Cramer said, the problem it ran into was its guidance, which wasn't as good as expectations. But that's not something to worry about, Cramer said. The company is playing the "UPOD" game -- under-promise on guidance and overdeliver on earnings, he said. After the selloff, the company is looking like a good buy, he said. Investors who have shorted some 9% of ViroPharma's shares should clear those positions and get long, he recommended. After closing at $19.35 on Tuesday, the stock is headed for $30, if not $40. "It's time to consider buying a lot of it," he said. The reason for Cramer's bullishness: ViroPharma has a drug that could be the "next big thing," he said. Much of ViroPharma's current business is centered on the drug Vancocin, which combats certain bacterial infections. The company purchased the drug from Eli Lilly ( LLY) for a pittance, some $120 million, Cramer noted. In contrast, the company posted nearly $126 million in sales of the drug last year alone, he said. Those sales should grow 30% just due to expected price increases, he said. Meanwhile, demand for the drug should grow another 10%, he said. That adds up to 27% to 35% growth, Cramer said, a forecast he called "conservative."
Lightning RoundBullishCramer was bullish on: CVS ( CVS - Get Report); Walgreen ( WAG); Commerce Bancorp ( CBH - Get Report); Principal Financial ( PFG - Get Report); Prudential ( PRU - Get Report); MetLife ( MET - Get Report); Conexant ( CNXT - Get Report); Omnova Solutions ( OMN - Get Report); Allegheny Tech ( ATI - Get Report); Fluor ( FLR - Get Report); Foster Wheeler ( FWLT); ConocoPhillips ( COP - Get Report); Occidental Petroleum ( OXY); Medco Health ( MHS); Apple ( AAPL); JDS Uniphase ( JDSU); NMT Medical ( NMTI) and Evergreen Solar .
BearishCramer was bearish on: PNC Financial ( PNC); Chicago Bridge & Iron ( CBI); TurboChef Chevron ( CVX); EarthLink ( ELNK); Drew Industries ( DW); Dell ( DELL); Ciena ( CIEN); and American Axle ( AXL). For more of Cramer's insights during the Lightning Round,
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