Annie Get Your X-Ray"When stocks start trading without any attention, any support from analysts, people stop caring," Jim Cramer told viewers of his "Mad Money" TV show Monday, calling those stocks "orphans." Cramer, as the "Daddy Warbucks" of orphaned stocks, said that he's found an orphan that can make you mad money, and that's NightHawk Radiology ( NHWK). Hospitals need work done overnight but are too cheap to keep a full staff of every type of expert on the premises 24-7, he said, a point that he believes is especially true when it comes to paying radiologists. It takes a radiologist 15 minutes to look over an X-ray, and they're paid a lot of money to do so, he said. And in order to get X-rays looked at 24 hours a day without paying overtime, Cramer said hospitals will use NightHawk. The company uses doctors based in Australia and Switzerland who work while American doctors sleep, doctors who receive X-rays over the Web and send the results back to hospitals in the U.S., he said. Most of its business is in looking at CT scans, Cramer said, adding that this is not just a "quirky little midnight outsourcing play." According to Cramer, NightHawk currently services 13% of U.S. hospitals, and the Idaho-based company says the U.S. is not making full use of its services yet. He also believes that demand for the product is outpacing supply, with the number of practicing radiologists in the U.S. increasing by only 1.5% a year. And if the market is nowhere near saturation, he believes that the company's accelerated revenue growth is likely to continue. A caller pointed out that the company reports earnings on March 9, and wanted to know if it's a good idea to buy after the results. Cramer said that investors typically fear that a company will miss revenue estimates put out by Wall Street analysts. But NightHawk has no analyst coverage, so there are no earnings estimates to miss.
Between the LinesAn article in Monday's Wall Street Journal regarding AT&T's ( T) deal to buy BellSouth ( BLS) carried the headline "Deal Could Speed Wireless Internet Calling,"Cramer said. He says that hidden in the headline is a real idea that could make you money. And when Cramer reads between the lines, he sees the words "buy Atheros Communications ( ATHR)." The company develops chips that extend the wireless range of electronic devices and cuts down on power consumption, he said. Plus, it won a design deal with Qualcomm ( QCOM), which, Cramer said, should make it easier for Atheros to get its chips into cell phones. This could bring us that much closer to convenient Internet cell-phone calls, he said, which could be a bull market because it's cheaper to make calls over the Internet. Cramer said that on top of helping Americans find cheaper and more convenient ways to make phone calls, the company should also make a fortune off of the digital convergence of home electronics. This is the emergence of more wireless access between a person's PC, stereo, phone and other electronics. Cramer believes that the estimates for the company are too low, which could mean a massive positive correction. "Forget Intel ( INTC)," he said, calling Atheros part of his "12-step program for Intel-a-holics." Cramer said to think of Atheros as a mini- Broadcom ( BRCM), but with a lot more potential to get bigger.
Analyst Up a TreeCramer played "Break the Analyst," the game where he takes an analyst's recommendation, explains why it's wrong and why one should do the total opposite. A JP Morgan analyst gave TreeHouse Food ( THS) an underweight recommendation, which Cramer said is gibberish for "sell." But he said that this private-label food company, which was spun off from Dean Foods ( DF), is a play that could make a dent in Wal-Mart's ( WMT) lead over supermarkets. TreeHouse announced this month that it will acquire canned-soup and baby-food companies, but the stock went higher, Cramer said. When a company buys another company, the general response is that the acquiring company goes down, he explained, but TreeHouse went up. "That, to me, is a dead giveaway about where this stock is heading ... going higher not lower," Cramer said. The analyst said that TreeHouse is too expensive for its peer group. And though Cramer said the stock has been up for a couple of days, he believes that it will not go down big. That's because he believes the analyst is barking up the wrong tree if he is comparing it to companies like General Mills ( GIS) and Kellogg ( K) -- big-brand companies that he said are hurting. Instead, TreeHouse is "exactly what the supermarkets need," Cramer said. Wal-Mart makes deals with the big brands, and that allows it to be the price leader in those brands because of its economy of scale, he said. And as long as Wal-Mart has the cheapest stuff, it should beat the supermarkets. So if supermarkets want to be the price leader, their niche will be in private-label goods, Cramer said, and that's where TreeHouse leads. Plus, TreeHouse is run by the same men who ran Keebler.
Radvision OutlookFinally, Cramer welcomed Tsipi Kagan, chief financial officer at Radvision ( RVSN) to talk about her company's upbeat quarter. Back when Radvision was trading at $12 a share, Cramer identified the company as one he believed would go higher, and now it's trading near $20. Kagan said that her company's quarterly success was in part due to the fact that Radvision, along with Cisco ( CSCO) and Northrop Grumman ( NOC), landed a huge homeland security contract with the federal government. Plus, the company is involved with upcoming 3G rollout in the U.S.
BullishCramer was bullish on Apple ( AAPL), The Pantry ( PTRY), Sherwin-Williams ( SHW), Target ( TGT), Home Depot ( HD), Lowe's ( LOW), Best Buy ( BBY), Finisar ( FNSR), LifeCell ( LIFC), Wyeth ( WYE), Microsoft ( MSFT), Nabors Industries ( NBR), Schlumberger ( SLB), Halliburton ( HAL) and Sirius Satellite Radio ( SIRI).
BearishCramer was bearish on Abbott Laboratories ( ABT), Sniffex ( SNFX), Bristol-Myers Squibb ( BMY), Johnson & Johnson ( JNJ), International Paper ( IP), Univision Communications ( UVN), Grant Prideco ( GRP) and Google ( GOOG). For more of Cramer's insights during the most recent Lightning Round,
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