Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday July 1.
Noodles & Company (NDLS) was a red hot IPO that might go higher on a new food trend. It was expected to price between $15 and $17, opened at $18 and nearly doubled to $32. The stock rose ever higher to $38 last Friday. Cramer thinks this is a great regional to national story; similar stocks have risen dramatically. NDLS offers every kind of noodle from Pad Thai to Wisconsin macaroni and cheese. This food trend might be the "next big thing," and Cramer said NDLS may be the "Son of Chipotle (CMG)." The company has 343 locations and it wants to open an additional 44 to 50 stores this year. It has reported amazing same store sales growth of 35%. Cramer would wait for a pullback to buy.
The averages were up, and Cramer believes this shows the market's resilience. There was good news out of Europe, and biotechs rallied when Onyx Pharmaceuticals (ONXX) rose 51% when it rejected a bid from Amgen (AMGN). Cramer thinks Regeneron (REGN) might be another biotech takeover target, with its macular degeneration drug. Individual companies like Boeing (BA), Ford (F) and Starbucks (SBUX) are reporting strong numbers, and management of Ford and Starbucks report green shoots in Europe. Restoration Hardware's (RH) positive results are an indication of the strength of the consumer. There are still reasons to be bullish, according to Cramer, even as the headlines communicate pessimism.
Cramer took a call:
Google (GOOG) reported a strong quarter. Cramer would not sell it.
With Onyx Pharmaceuticals (ONXX) rising 51% after it rejected a takeover bid from Amgen at a 38% premium, it might be time to look at the biotech space again. Amgen has been slowing and needs an acquisition to inject growth in the company. For those who bought ONXX on Cramer's recommendation, it is time to take profits. It is possible to keep a small position, but much of the money in ONXX has been made. Other possible takeover targets are Seattle Genetics (SGEN), ImmunoGen (IMGN), BioMarin (BMRN), Tesaro (TSRO) and Pharmacyclics (PCYC). All of these rose a few percentage points on Onyx's news, but they are likely to have more upside.
Cramer's favorite biotechs are not takeover targets. Gilead (GILD), which specializes in drugs to treat HIV and Hepatitis, trades at a multiple of 17 and has a 26% growth rate. He also likes Celgene (CELG) which has a blood franchise and trades at a multiple of 17 with a 22% growth rate.
Cramer took some calls:
Alexion (ALXN) has an auto-immune and cardiovascular segment and is a great company; "You should own it."
Globus Medical (GMED) is a good situation to buy on any weakness.
Trius Therapeutics (TSRX) has a skin infection treatment that is awaiting approval from the FDA. It has rallied 28% since Cramer recommended it on May 3rd and may now be "too hot to handle."
Array BioPharma (ARRY) is a speculative biotech with 5 programs awaiting phase III approval. This is a rare opportunity, and while it has risen 37% year to date, it is a possible buy.
Cytokinetics (CYTK) has drugs for heart failure and skeletal muscle weakness. It is up 220%, and Cramer thinks it is too late to buy.
Six Flags (SIX) is a great company, but needs better weather.
Costco (COST) is going much higher.
Broadcom (BRCM) was downgraded and lacks catalysts. Although it pre-announced better than expected numbers, it should be sold.
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