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NEW YORK (TheStreet) -- If you're in a dogfight to attract customers, your customers might win, but your shareholders certainly won't. That was what Jim Cramer's told his Mad Money viewers Wednesday after the transportation stocks, led by the airlines, pulled the averages lower.
When the CEO of American Airlines (AAL) appeared on Mad Money last night, he told investors that competition is starting to heat up and American is ready to respond with lower fares if needed. That spells trouble for the entire airline industry, Cramer warned, because the earnings estimates for the airlines will need to be cut.
That's why Cramer suggested sticking with companies that have no competition, companies like the biotechs, which often have proprietary drugs protected by patents or orphan drug status. His favorites among the group were Regeneron (REGN) and United Therapeutics (UTHR), whose CEO also appeared on last night's show.