Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday December 10.
The London Daily Mail broke the story that even the Queen of England uses Tupperware (TUP). Cramer has long been a fan of this direct seller, because it has a respected brand, is a well-run company and has a pristine balance sheet. TUP's organic growth rate is 6%, and it is seeing a dramatic rise in emerging markets, with sales in Latin America rising; Indonesia, its largest market, growing at a 30% clip and sales in India rising by 50%.
Cramer took some calls:
Ingersoll-Rand (IR): Cramer would stick with this stock.
Tiffany (TIF) is a stock that has not been reliable. He would play growth of retail in Asia with Phillips-Van Heusen (PVH), which has been punished by the unseasonably warm weather in the U.S., but should see rising demand in Asia.
ImmunoGen (IMGN) develops chemotherapy agents that target tumors directly. The stock ran up to $18 on news of a breast cancer treatment it developed with Roche. The drug is expected to be released next year, but IMGN's stock declined because of news that IMGN will not receive all of the royalties. However, Cramer thinks IMGN is still worth looking at, because it has other drugs in the pipeline, including a treatment for small cell lung cancer, ovarian cancer and lymphoma. CEO Dan Junius discussed results of IMGN's multiple myeloma treatment, which is showing high rates of efficacy, and is a drug that can be used in combination with Celgene's (CELG) successful drug, Revlimid. Cramer thinks that even though it has to share royalties with Roche for the breast cancer drug, IMGN should generate large revenues from this treatment and the other drugs in its pipeline. Cramer would stick with IMGN.
CEO Interview: Al Monaco, Enbridge (ENB)
Enbridge (ENB) has seen its stock rise only $1 in the last few months, but the company has announced some good news; there will be a new pipeline project from the Baaken and a joint venture with rails to transport oil. The company now has $26 billion worth of projects until 2016 and earnings are expected to grow at a 10% annual clip. ENB raised its yield by 12%, so its dividend is now 3%. CEO Al Monaco said he is not worried about competition from rail, since pipeline is still the cheapest way to transport fuel. Exporting natural gas is profitable, as long as natural gas prices overseas remain higher than in North America. Monaco thinks that Asia will be a strong market for natural gas. Cramer thinks ENB is the "most consistent growth pipeline story."
CEO Interview: Clay Siegall, Seattle Genetics (SGEN)
Seattle Genetics (SGEN) has developed a drug, Adcetris, which has been approved for lymphoma, but only for small applications. SGEN is seeking approval for a wider application of Adcetris, but since there was no news about this at a recent conference, the stock dropped 4.6%. CEO Clay Siegall discussed the drug's 100% response rate in T-cell lymphoma and the 88% remission rate. The drug is being tested to treat Hodgkin's lymphoma, which is twice as prevalent as T-cell lymphoma. For Hodgkin's lymphoma, tests so far are showing a 96% complete response rate with less toxicity. While the company's guidance was flat, Siegall explained that by February, SGEN should have a clearer idea of what the true guidance for the year will be. There are many upcoming catalysts, including expected approval of Adcetris in Canada and Europe and 10 new clinical trials.
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