Cramer's Stop Trading! - Mergers: Pharma's Miracle Cure (3/12/09)

Stocks discussed on Cramer's Stop Trading! TV Program, Thursday March 12.

Genentech (DNA), Wyeth (WYE), Schering Plough (SGP), General Electric (GE), Goldman Sachs (GS), Bank of America (BAC), Citigroup (C)

Cramer says the $193 billion worth of takeovers in pharma is a bullish sign for the sector; “This is the money from the sidelines that we don’t have,” he said. “It is really significant.” Cramer also noted General Electric's remaining steady even after a downgrade shows a shift in psychology. He suggested Goldman Sachs raise equity to pay off TARP funds. Cramer also noted Citigroup and Bank of America has been profitable.

::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and his Stop Trading! Picks.

Get Cramer's Picks by email-- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com

Comments

[Student of ...:]

Pharma mergers such as MRK and SGP along with PFE and WYE are a sign of weakness when the primary objective is cost savings, not pipelines or new technology. When an industry has to resort to mergers and eliminating redundancies i.e. job cuts to grow earnings, they're probably screwed in the long term.

Mar 14 10:16 PM