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NEW YORK (TheStreet) -- It's amazing what happens when the markets stop fretting about Greece and start letting the good stocks shine, Jim Cramer told his Mad Money viewers Monday. Investors can choose from a whole menu of great stocks with long-term growth potential.
Cramer was bullish on the classic growth names, stocks like Walt Disney (DIS), Nike (NKE) and Stabucks (SBUX), a stock which he owns for his charitable trust, Action Alerts PLUS, all of which are doing quite well.
Then there are the banks, which profit from rising interest rates. Wells Fargo (WFC), another Action Alerts PLUS name, and JPMorgan Chase (JPM) remained Cramer's favs among that group. He was also bullish on tech names with long-term growth stories like Skyworks Solutions (SWKS).
Cramer saw strength in biotech and regular tech, with names like Celgene (CELG) and Apple (AAPL), also an Action Alerts PLUS holding, getting the nod. Still other stocks included international names like Honeywell (HON), as well as consumer packaged goods and even housing-related names like Home Depot (HD).
Finally, Cramer told viewers to also be on the lookout for more mergers and acquisitions, as the deals keep on coming on almost a daily basis.
Stick with UnitedHealth
With the Federal Reserve set to begin raising interest rates any time now, investors need to stick with secular growth stocks, like the health care cost containment companies. The best of breed player in that group is UnitedHealth Group (UNH).
In addition to being our nation's largest health care provider, UnitedHealth has Optus, its "secret sauce" that includes a pharmacy benefit manager and services company that is expected to contribute up to 40% of UnitedHealth's total earnings in the coming years. UnitedHealth already puts up huge numbers, but the company is still expected to grow between 9% and 12% a year. Shares of UnitedHealth trade for 17 times earnings, a slight premium to its peers, but Cramer said it deserves that premium and more given its best of breed status and the fact its shares are up 86% over just the past two years.
Should You Buy Ambarella?
There's no doubt that shares of semiconductor maker Ambarella (AMBA) have been on fire of late, with the stock up as much as 150% so far this year. But with the massive selloff of nearly $30 a share in just the past two days, is it time to finally throw in the towel?
The bear case for Ambarella is the company will fall victim to commoditization, is too levered to its largest customer, GoPro (GPRO), and that its valuation is absolutely absurd.
Meanwhile, the bulls say that the company makes the best products for the most lucrative end markets and thus deserves its valuation. Who's right?
Cramer sided with the bulls, saying this video-capture chipmaker is one of only a handful of companies with accelerating revenue growth, or ARG. With shares now trading at just 30 times 2016 earnings, money managers will likely keep paying up for that growth.
Ambarella isn't likely to succumb to commoditization as the company makes only high-end chips and continues to innovate. It's also diversifying itself away from GoPro into very lucrative-end markets like drones, surveillance systems, automotive video and body cameras.
With 55% revenue growth expected in 2016, Cramer said this is one semiconductor stock that deserves its premium valuation, especially when shares have fallen so far in the past few days.
Executive Decision: Bob Ward
For his "Executive Decision" segment, Cramer sat down with Bob Ward, president and CEO of Radius Health (RDUS), a biotech working on a new treatment for osteoporosis. Shares of Radius were up 386% in 2014.
Ward said its new drug, Abaloparatide, is shaping up to be a far superior replacement for Forteo, the current drug offered by Eli Lilly (LLY), which currently has sales to the tune of $1.2 billion a year.
During Radius' 18-month active trial, Ward noted that patients saw zero spinal fractures, a significant feat. He said the key to treating osteoporosis is not waiting until patients reach 70 or 80 years old and facture a big bone, like a hip, but to diagnose them earlier in their 50s.
Abaloparatide is expected to be submitted to the FDA for approval by the end of 2015, with approval expected later in 2016.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer was talking takeovers. He said there are two kinds of takeovers, ones based on growth and ones spurred on by activist investors.
In the former category there are deals like Anthem's (ANTM) bid for Cigna (CI). Anthem wants growth and Cigna can provide it, assuming the two can agree on a fair price. Given that both companies are in the same business, the synergies are tremendous, making the deal a no-brainer.
But then there are the activist-inspired deals, such as ConAgra (CAG), the lagging food company that could soon see itself up for sale as activists prod for change. ConAgra would be a terrific target for Kraft Foods (KRFT), Cramer noted.
Then there's Twitter (TWTR), the Action Alerts PLUS name that Cramer argued wouldn't catch activist eyes because the company has no leader and could start losing money if it can't regain its growth. Without the safety net of an acquirer, Cramer said activist involvement in Twitter is unlikely.
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