Cramer's Mad Money - Does Your Portfolio Have FANGs? (2/5/13)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday February 5.

Your Portfolio Should Have FANGs: Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Google (NASDAQ:GOOG)

Cramer discussed 4 charts, and he thinks these 4 stocks, which form the acronym FANGs, are the new tech stocks to watch. Facebook (FB) has a ceiling of resistance at $32, and if it pulls back to $23, Cramer would buy, since FB is showing a bullish cup and handle formation. Amazon (AMZN) has roared out 10% from its head and shoulders formation. If the stock goes below its support of $250, it might be worth buying, particularly if it drops to $215. Netflix (NFLX) is in a bullish pennant pattern, but it has had a huge move, and the stock may move sideways for a while. Google (GOOG) has risen significantly, but may have 10% more upside

CEO Interview: Sandy Cutler, Eaton (NYSE:ETN)

Last year, Eaton (ETN) acquired Cooper Industries for $13 billion, and now Eaton, a diversified industrial, has more exposure to the electric business. Eaton reported that revenues have risen 7.4% and management said end markets are strong. Eaton's stock rose 4.93% on the news, and is up 14% since Cramer last spoke to the CEO in June. CEO Sandy Cutler said, "Eaton and Cooper have had strong positions with different products and services. With our ability to bring them together in gas and in mining, in commercial construction and data centers, we become a much more capable supplier." Cutler said he looks forward to a pickup of business in China. Cramer congratulated Cutler on a great quarter for Eaton.

CEO Interview: David Pyott, Allergan (NYSE:AGN)

Allergan (AGN) is an example of a healthcare company that has succeeded in finding multiple uses for its leading product. Not only is Botox a leading anti-wrinkle treatment, but it has been used successfully to treat migraines, and its most recent application is for treating overactive bladder. As a result, Botox sales are expected to double by 2020. AGN's forecast surpassed analyst expectations; it should be noted that AGN is usually conservative with guidance. AGN has risen 20% since Cramer last spoke to the CEO in September and is up 160% since Cramer got behind it four years ago. CEO David Pyott discussed a new treatment for migraines through inhalation. Allergan is developing a treatment for macular degeneration which, if approved, would entail fewer injections than the current drug. Cramer recommends buying Allergan on any pullback.


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