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NEW YORK ( TheStreet) -- There are a ton of earnings coming out next week, Jim Cramer told "Mad Money" viewers Friday, as he laid out his game plan for next week's trading. Cramer said investors need to stop, look and listen before they buy and make sure they can process all of the information that will be coming at them. On Monday, Cramer said Citigroup ( C) will be reporting. While the banks are cheap and making a lot of money, he still prefers sticking with JPMorgan Chase ( JPM), a stock he owns for his charitable trust,
Speculation FridayFor "Speculation Friday," Cramer followed up on NPS Pharmaceuticals ( NPSP), a stock he featured on Sept. 18 on the premise the company would receive positive news from the U.S. Food and Drug Administration in October. NPS did indeed receive that positive news, sending shares up 32% in just the three weeks since the mention. Cramer said investors should not be greedy and should ring the register on NPS. But what about the next NPS Pharma? Cramer said he likes ISIS Pharmaceuticals ( ISIS), a $12-a-share biotech with a drug discovery platform that is providing the company with no less than 25 new drug possibilities. One of those possibilities is a drug called Kynamro, which is up before the FDA late next week. Kynamro treats a rare condition in children which produces extremely high cholesterol, up to four times that of normal adults. The condition may be rare, afflicting only 3,000 patients in the U.S., but Cramer said if successful, Kynamro could possibly be used for more patients. There is a caveat however, as another company, Aegerion Pharmaceuticals ( AEGR), has a similar drug before the FDA on Tuesday. Cramer said he expects both drugs will receive approval, but noted that ISIS poses less risk to investors as the company is larger with more cash on hand in case the FDA needs more data. The company also has those other 24 drugs in the pipeline, which would help it weather and negative news. Cramer said he'd start half a position in ISIS on Monday, then buy the rest on Tuesday if ISIS gets hit on a Aegerion approval. He warned not to chase the stock higher, however, a warning he gives on all speculative stocks.
'Anointed' StocksFor the final installment of his "Anointed Q4 Stocks," Cramer recommended a pair of biotech names that he said money managers will be clamoring for over the next two and a half months. He said that investors need to add Alexion Pharmaceuticals ( ALXN), a stock that's already up 56% for the year, and Gilead Sciences ( GILD), which is up 66%, to their portfolios. Cramer explained Alexion has so-called orphan drugs to treat rare blood disorders. The "orphan" status means the government helps in any way possible to bring these drugs to market.
Alexion's primary drug, Soliris, is one of the most expensive drugs available, costing $500,000 a year. The company is now seeking to expand Soliris to treat rare kidney diseases, which could add another $900 million to Soliris already $2 billion in revenues. Tack on other possible uses for Soliris and Cramer said Alexion could have $5.4 billion in revenue over the next few years. That's part of the reason why shares of Alexion are up 321% since Cramer first recommended it in October 2010. Then there's Gilead Sciences, primarily known for its quad pill HIV treatment that can be taken just once a day. Gilead also has a strong hepatitis-c franchise, which could be worth $8 billion over the next six years. Cramer explained that unlike the current treatment, which is a 24-week injection regiment with varied results, Gilead's treatment is only a 12-week oral treatment that has seen 100% cure rates in some patients. Unlike many other stocks, Alexion and Gilead are secular growers, said Cramer, and therefore don't need a strong global economy to do well.
Lightning RoundIn the Lightning Round, Cramer was bullish on Eli Lilly ( LLY), Monro Muffler ( MNRO) and Kinder Morgan Energy Partners ( KMP). Cramer was bearish on Cooper Tire & Rubber ( CTB), Fusion IO ( FIO), Kinder Morgan ( KMI) and Nvidia ( NVDA).
Cramer Goes 'Bad'In a special interview, Cramer spoke with actor, writer and director Bryan Cranston, star of the new motion picture "Argo" as well as AMC's TV series "Breaking Bad." Cramer said "Breaking Bad," while centered around a highly successful drug dealer, also affords viewers an honest look into exactly what it takes to start and operate a small business. Cranston agreed with Cramer's sentiments, saying that while many view actors as portraying fantasy, in reality actors try and define the truth and honesty around their characters. In the case of "Breaking Bad," Cranston said he shadowed university professors for a few days just to better understand the world of science and chemistry. For the movie "Argo" he spent a week at CIA headquarters learning that while the spy trade does have its secretive mystique, it's also filled with the same bureaucracy we all face every day.
Returning to the "Breaking Bad" series, Cranston said that even the drug trade needs smart people to run highly efficient operations, just as the rest of the business world. "These are smart, careful people," he added. Cramer said while he doesn't condone the drug trade, he said that viewers of the series can sure learn a lot about how to run a successful small enterprise.