There are bargains galore in the stock market but you would never know, Jim Cramer said on his "Mad Money" show Tuesday. With the exception of health-care costs, which has risen year over year, everything else is cheap, including stocks, which are down 32% year over year, he said.
Healthcare GemCramer delved into health care stocks in this segment. He said Wall Street is getting greater clarity from Congress on the health-care overhaul and that, in turn, will turn tell us which companies are going to get penalized and which one are going to be profitable. He said mutual funds are already starting to mark up certain names as the current quarter draws to a close. One name he likes is Quest Diagnostics ( DGX), the nation's largest lab testing company. The company provides commercial clinical testing services and provides products that enable diagnostics. According to Cramer, the opinions of the chartists have ranged all over the map, from being a buy to being negative to being uncertain. Cramer, though, loves the company's fundamentals, especially the point that labs are due for a 4.5% increase from Medicare in 2009. He said the well-run company is the fastest growing company in a fast-growing industry. Furthermore, it is expanding into Brazil and India. He said the stock is a steal at 13 times its 2010 earnings.
Am I Diversified?Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included: Allos Therapeutics ( ALTH), Broadwind Energy ( BWEN), First Niagara ( FNFG), RF Micro Devices ( RFMD) and Quest ( Q). Cramer said this speculative portfolio in a bizarre way was OK. The second caller's top holdings included DigitalGlobe ( DGI), Solar Winds ( SWI), Ford ( F), New Gold ( NGD) and General Electric ( GE). Cramer said this investor was rolling the dice with this speculative portfolio. The third caller had Abbot Labs ( ABT), ConAgra ( CAG), Raytheon ( RTN), PPG ( PPG) and Flextronics ( FLEX) as their top five stocks. Cramer said this traditional portfolio was diversified.