Jim Cramer's Mad Money In-Depth Stock Picks 8/01

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday August 1. Click on a stock ticker for more analysis:

To Your Health: Pfizer (PFE), Humana (HUM), Pharmaceutical HOLDRs (PPH)

Medicare reforms are encouraging people to buy more drugs, observes Cramer, who discovered this when he interviewed Humana CEO, Mike McCallister, and says that, since this information is not widely known, there could be a lot of money in store for shareholders. Cramer says that good times are ahead for PPH, but those who buy the drug index might be getting the best and the worst, and suggests doing homework on individual stocks instead. Cramer says that Pfizer is now in the house of pleasure, has a good risk/reward ratio, and that its drugs, Viagra and Lipicor are winners. PFE also has replaced former CEO Hank McKinnell with Jeff Kindler, and will show some unexpected growth. Cramer gives investors a 6 month window to buy this stock.

Silencing Critics: Comcast (CMCSA)

Comcast was avoided for a long time because analysts felt it was postponing its triple play of TV, phone and internet, that it was losing subscribers and had little prospects for growth. However, Cramer believes that now is the time to buy CMCSA; "It's like a caterpillar that grew up and turned into a money-making butterfly," Cramer said. Its numbers are great, CMCSA has been buying back stock, and Cramer declares it a triple buy at $34.19.

Overplayed Under Armour (UARM)

Cramer says that UARM was one of his best calls, but now it is too high to buy and he recommends selling UARM right away. Cramer feels that the stock has played out and no longer has an advantage over Nike (NKE) or Reebok. The fact that UARM is getting into football cleats is not a good sign, notes Cramer.

CFO Interview: Bob Hugin, Celgene (CELG)

When Cramer asked if CELG can maintain its great performance, Bob Hugin responded that that the future looks bright for the company. He added that FDA approval of off-label Revlimid has helped Celgene, although 90% of its use is still on-label. Cramer asked Hugin if he is worried that the government might cut the reimbursement rate for the drug, and Hugin responded that the company could meet this challenge, but they have always enjoyed good reimbursement rates in the past. He also commented on the success of Thalomid. Cramer said that he sees CELG going higher, and that, CELG is his favorite biotech aside from Amgen (AMGN).

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