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The No. 1 stock people should consider buying going into this week's JP Morgan Healthcare Conference is Gilead Sciences ( GILD), Jim Cramer told viewers of his "Mad Money" TV show Monday.

The biotech gala is usually an event at which market players are able to find many long- and short-term trading and investment ideas, he said. It sets the agenda for the year and tells investors how Wall Street is going to approach a sector.

Cramer believes that 2007 should be a good year for biotech. His top pick going into and coming out of the conference is Gilead. While it is not Cramer's biotech play of the year, he believes that people should own it now, ahead of this conference.

Not only does Gilead have a "great pipeline," but it also has the "best portfolio of HIV drugs on the market," he said. But the Street is taking a cautionary approach toward the company because investors are nervous about the fact that Gilead recently bought Myogen, Cramer said.

"They are not comfortable with the matchup."

However, he believes that this nervousness doesn't really make sense and is attributable to investors' not really understanding the acquisition. When Gilead bought Myogen, it made the company difficult to understand, Cramer explained.

At JP Morgan's conference, money managers should hear the reassuring words they need to hear about the merger, he said. After this handholding takes place at the conference, investors will likely jump on Gilead's bandwagon, Cramer said.

However, he advised market players to do their own handholding -- called homework -- and get into the stock ahead of the pack.

Mispriced Merger

Another stock that Cramer believes people should get into ahead of the conference is Thermo Fisher Scientific ( TMO). He suggested people buy it at 10 a.m. EDT Tuesday, before the company is scheduled to present at the conference at 11 a.m.

On Nov. 9, TMO merged with Fisher Scientific and made itself into a better market-cap company, Cramer said. This merger, along with TMO's "coming out party" on Tuesday, should do good things for the stock, he said.

TMO is a "premier arms supplier to the whole pharmaceutical business," and while it may not be a pure play, all of its end markets are "strong," Cramer said. In addition, "ever since the merger, analysts have been falling over themselves" to raise its estimates.

However, Cramer believes the analysts and the Street are still underestimating "what a powerhouse it has become." TMO, which should be able to cut costs, increase margins and have 32% growth this year with the merger, is "mispriced," he said.

"It's the biggest, the best and deserves to trade at a premium to other life sciences companies," Cramer said. Meanwhile, it is currently priced below its lower, not-best-of-breed competitors.

Buy TMO Tuesday morning before it presents, he advised.

Look Over Optium

Cramer named Optium ( OPTM) as the most overlooked initial public offering of 2006.

The company's IPO, which took place on Oct. 7, was overlooked, he said, because it was lumped with all the other telcos. But it shouldn't have been.

Cramer believes that the stock should do well off its triple-play threat (Internet, TV and radio) and broadband shortage. He urged people to get on board with Optium as it has been "overlooked and written off."

Cramer called Optium the "optical infrastructure play we have been hoping for." Moreover, he said, it is well run, is successful, has tripled its backlog and is "worth buying."

As Optium is a speculative play, he recommended market players do their homework before buying the stock and advised investors who believe Optium too technologically difficult to understand to pass on it.

There are other opportunities, so don't waste your time on something you don't get, Cramer said.

The Gold Bar

Cramer welcomed Yamana Gold ( AUY) CEO and President Peter Marrone to the show and asked him to explain how his company has low finding costs and is in the best position to be a proxy for people who want to own a gold stock but not gold itself.

The mines that Yamana owns are "very large operations," Marrone said. Because of the mines' size, scope and scale of operations, the company is able to produce gold at a relatively low cost, he explained.

Every ounce of gold Yamana produces has a cash cost that is relatively low because of the byproduct credits the company receives from its copper production, Marrone went on to say.

And in 2007 and 2008, the cash cost will be negative, which means it won't cost anything for Yamana to produce gold.

When Cramer asked about the company's acquisition opportunities, Marrone said there are a lot of things to acquire and that once Yamana's stock price gets consistent with those of its peers, there are lots of opportunities the company could look at in Latin America.

Cramer advised investors looking to own a gold stock to look at Yamana.

Lightning Round

Cramer was bullish on Thermo Fisher Scientific ( TMO), Marvell Technology ( MRVL), Companhia Vale do Rio ( RIO), Hewlett-Packard ( HPQ), USG ( USG), Community Bank System ( CBU) and Daktronics ( DAKT).

Cramer was bearish on Mindray Medical International ( MR), Internap Network Services ( INAP), Intuitive Surgical ( ISRG), Amphenol ( APH), Rio Tinto ( RTP), BHP Billiton ( BHP), Systemax ( SYX) and Peabody Energy ( BTU).

For more of Cramer's insights during the Lightning Round, click here .


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.
At the time of publication, Cramer was long Marvell Tech and Hewlett-Packard.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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