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NEW YORK ( TheStreet) -- Bear markets create problems but bull markets solve them, Jim Cramer told "Mad Money" viewers Wednesday. Cramer compared the prevailing wisdom of just four months ago against the realities of today. Cramer said that back in December there were five things the bears were preaching: The federal government was about to fall off a cliff, the Federal Reserve was going to slow its bond buying and problems in Europe were back on the radar. If those didn't kill us, then surely the debt ceiling and sequester would and, if not, fourth-quarter earnings would certainly be miserable. Cramer said all of these notions seemed perfectly plausible back then, but reality played out in a starkly different manner. Earnings turned out to be some of the best we've seen in 15 years. Meanwhile, the markets simply stopped being worried about Washington or Europe. Our tax code didn't change all that much and the Fed won't be slowing its stimulus until employment picks up. The sequester has been a dud thus far and continued gridlock in Washington has been a boon for the markets. It's time to embrace the future, Cramer concluded, as the markets focus on the future, not the past. The bulls are in charge and those remaining bears are just costing investors money.
A Pharma Dividend PlayAll Big Pharma names are not created equal, Cramer told viewers, as he highlighted GlaxoSmithKline ( GSK) as the next stock in this week's focus on the sector. He said that Glaxo is not a breakup story, nor a catch-up stock, but a good, old-fashioned dividend play with a juicy 5.8% yield. Cramer said that while a big yield is sometimes a red flag, that's not the case with Glaxo now that its legal issues are largely behind it. The company just reached a $3 billion settlement over the advertising of some of its anti-depressant drugs and it has a huge pipeline of new drugs. Glaxo is set to seek approval for 15 drugs, some of them blockbusters, over the next three years. Everything from new asthma treatments to cancer drugs and heart therapies will be coming from the company in fairly short order. That translates into an 8.4% compound growth rate through 2018, said Cramer.
On the negative side, Cramer noted that Advair, Glaxo's current asthma drug, will be coming off patent in Europe soon and shortly thereafter in the U.S. Advair currently accounts for 20% of Glaxo's total revenue, but Cramer noted that many of the company's new drugs should offset any losses stemming from Advair over the next few years. Trading at just 13.6 times next year's earnings, Cramer said Glaxo is a very cheap stock. He said a 16 times earnings multiple is certainly warranted and he'd be willing to pay even more for a company with such terrific growth.
Action Alerts PLUS , it's no wonder this sector has been in the doldrums. But with many investors believing that worldwide growth will return during the second half of the year, Cramer said valuations for these companies have simply gotten insanely low. Case in point, Oracle ( ORCL), a stock that traded as low as 11 times earnings after it reported but then was able to rally as valuations simply got in the way of a positive 2013 story. Cramer said if technology can withstand this upcoming round of earnings, things are certainly looking up for the group during the second half of the year. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC