Cramer's Mad Money - Will Allergan's Stock Get A Facelift? (8/1/13)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday August 1.

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

Allergan (AGN) may be headed for a rebound. The last time AGN reported, the company announced that a key product in its pipeline for macular degeneration needed additional work, and approval was going to be delayed. The stock got punished. In June, its treatment for dry eye was said to be facing generic competition sooner than expected. The company reported a better-than-expected quarter this time around, with a 2 cent earnings beat and strong revenues. Still, some investors are worried. In spite of tenuous headlines, the company is performing well with 10% top line growth, 17% year to date. The company exceeded guidance on every front, has had 8 approvals from the FDA since 2010, and expects 4 more by next year. The company's treatment for dry eye is the leading drug on the market with $1 billion in sales. CEO David Pyott thinks it is unlikely that a generic version will be approved soon. Botox continues to be a strong performer with many applications.

Yelp (NYSE:YELP). Other stocks mentioned: Apple (NASDAQ:AAPL), Oracle (NASDAQ:ORCL)

Yelp (YELP) is a master of mobile and reported that second quarter sales were up 69%. Yelp's site is a boon for advertisers and helps guide the consumer to products that suit his or her needs and tastes. Companies are desperate to have reviews on Yelp, which has become a replacement for the yellow pages. Yelp's partnership with Apple (AAPL) is mutually beneficial, and it wouldn't cost Apple much to actually buy Yelp to improve its mobile exposure. There are two ways to win with Yelp: on its own merits, which are substantial, and as a potential takeover.

Cramer took some calls:

Oracle (ORCL) is a stock Cramer likes, but he has questions about why the company missed numbers.


"Never try to bet against the hottest, most powerful tech trend out there ... never bet against the cloud," Cramer said. MKTO had its IPO in May, but got slammed with the rest of the market. The company helps clients streamline marketing decisions and build long-term relationships with customers, particularly in social media. In spite of its decline in May, MKTO blew away the numbers in its first earnings report with revenues up an astounding 62%. The stock has risen 45% since Cramer interviewed the CEO, John Fernandez, in June. Fernandez discussed profitable partnerships, competition in the industry and questions about a takeover; "We'll do the right thing for shareholders, but we plan to build a very big company."


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