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Cramer explained that the markets are starting to see signs of hope in China, and U.S. stocks are starting to respond. That was certainly the case when analysts went positive on Freeport-McMoRan (FCX) and Joy Global (JOY) , which rocketed 9.9% and 5.5%, respectively, on the promise of continued strength in China.
The strength in mining and minerals was followed by a continued stabilizing of oil prices, with even Brazil's troubled Petrobras (PBR) soaring 4% on the day.
Casino operator Wynn Resorts (WYNN) has seen its shares rally 35% over the past week, thanks to strength in Chinese gambling in Macau, while General Electric (GE) is leading the industrials higher as well.
But as well as stocks are responding to China, Cramer noted that if China's market opens weaker after its long holiday, investors should expect the money to rotate right out of these names and back into stocks with high growth.
Know Your IPO
In his "Know Your IPO" segment, Cramer took a closer look at three recent biotech initial public offerings to see if any of them are worth owning given the negative criticisms the group has garnered over the past few weeks.
He said that when Novocure (NVCR) came public last Friday at $22, the stock fell to $18 by the close and now trades near just $16 a share. But Novocure's cancer treatment that uses electrical fields to disrupt cancer cells is the real deal, Cramer said, and the company has 52 patents to prove it. Given the multiple indications the company's technology could one day treat, Cramer said this stock is a winner.
The same could not be said for Edge Therapeutics (EDGE) , which like many early-stage biotechs has no products to speak of, nor will have any catalysts until 2016. Cramer was also not a fan of Aclaris Therapeutics (ACRS) , another tiny company that is only entering Phase I trials for its skin treatments.
Cramer's Fantasy Stock Portfolio: Kicker, Defensive Line
For the fifth and final segment of his "Fantasy Stock Portfolio," Cramer offered his picks for a kicker and a defensive line, two positions that can make or break any portfolio.
When it comes to a kicker, Cramer said consistency is key. That reminds him of Pepsico (PEP) , which has beaten the estimates eight quarters in a row. Likewise with Nike (NKE) , another company that's often bet against but rarely misses the mark.
As for defense, Cramer said investors should be looking for companies that just don't screw up, companies like the consumer staples that are not cyclical and also offer dividend protection. He favorites among this group included Clorox (CLX) , which has less international exposure than its peers, and Kimberly-Clark (KMB) , which is a steal at current levels.
No Taste for Yum!
What was so bad at Yum! Brands (YUM) that shares plummeted 18.8% in a single day? Cramer said things have gotten so bad that this stock is now radioactive for the foreseeable, and probably also the unforeseeable, future.
Yum! has always been tied to the fortunes in China, Cramer explained, as Pizza Hut and KFC have become cult phenomenons in that country. And after management talked up growth in both July and August of this year, investors were expecting great things when the company reported today.
But instead of the 10% same-store sales growth analysts were predicting, Yum! delivered just 2% growth, with KFC sales terrible and Pizza Hut falling off the proverbial cliff.
With the hopes and dreams of both the momentum investors and the turnaround hopefuls now crushed beyond repair, Cramer said he's surprised this stock wasn't down much, much more.
Executive Decision: Richard Pops
When asked about the renewed focus on drug pricing, Pops said that companies that make important medicines will continue to do fine in any environment.
Pops talked about the benefits of the company's long-lasting treatment for schizophrenia and opiate addiction. He said our country tolerates relapses from patients not taking their medications, but it doesn't have to. Alkermes' treatments can last four, six or even eight weeks on a single dose, dramatically lessening the burden on patients to take medication daily.
Pops said Alkermes understands the realities of those with addictions and mental illnesses. Often it's a tough environment for these patients, he said, which is why his company's treatments are so important.
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