"Every once in a while, the market does something so stupid it takes your breath away," Jim Cramer told viewers of his "Mad Money" TV show Monday. And when it does this, it can create a fallen angel. A fallen angel, he explained, is a stock that deserves to trade at a higher multiple than it does. Therefore, Cramer said he was dedicating the show to explaining how certain fallen angels have gotten to where they are, why he believes people should buy them, and what should bring them back up. He named VF Corp. ( VFC) as his first fallen angel.
Flight TimeAmgen ( AMGN) is another stock that has taken a hit for the wrong reasons, Cramer said. Last week it got its wings ripped off because of headlines that said its Aranesp drug was fatal to some patients, Cramer said. But the bad headlines, which caused the stock to fall, were actually off base, he said. The patients who died had terminal cancer and had given up on chemotherapy and radiation treatment, Cramer explained. They weren't expected to get better. While Amgen fell in part because of the negative headlines, it also fell because it gave low guidance, Cramer said. Amgen is notorious for being conservative with guidance, he said. Therefore, if history repeats itself, he believes that people should see an upside surprise here. The fact that Amgen is selling like a traditional slow-growth pharma company is "crazy," Cramer said. Forget the headline risk, because with steady earnings growth and with a new colon cancer drug and new osteoporosis drug in its pipeline, the stock has only good news ahead of it, he said.
Quest Is CheapLastly, Cramer named Quest Diagnostics ( DGX), which he owns for his charitable trust,
Lightning RoundCramer was bullish on Guidance Software ( GUID), Hewlett-Packard ( HPQ), Akamai Technologies ( AKAM), Allegheny Technologies ( ATI), Arris ( ARRS), Starwood Hotels & Resorts ( HOT), Hilton Hotels ( HLT), China Mobile ( CHL), PetroChina ( PTR), Penn National Gaming ( PENN) and DuPont ( DD). Cramer was bearish on Buffalo Wild Wings ( BWLD), ATMI ( ATMI), WebEx Communications ( WEBX), Methanex ( MEOH), Harmonic ( HLIT), China Automotive Systems ( CAAS), BASF ( BF), Turkcell Iletisim ( TKC) and iRobot ( IRBT). For more of Cramer's insights during the Lightning Round,
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