Speculation Friday

For "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' Stocks

For 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.

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