Cramer's Mad Money - Ignore Obama's Healthcare Speech (9/9/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday September 9.

Medco Health (MHS), Express Scripts (ESRX), St.Jude Medical (STJ), Boston Scientific (BSX), Gilead Sciences (GILD), BioCryst Pharmaceuticals (BCRX), Novavax (NVAX), Wellpoint (WLP)

Cramer told viewers to forget about Obama's healthcare reform speech and to stop trying to game these policies; the President has less backing for his proposals and will definitely have to compromise. Stocks which would have taken it on the chin if Obama's reforms had been passed should see an uptick as worries subside; these stocks include Medco Health, Express Scripts, St. Jude Medical and Boston Scientific.

The real story in healthcare is swine flu, which threatens to become an epidemic this winter. Cramer likes Wellpoint on the swine flu scare, since it gets only 10% of its earnings from Medicare Advantage. Speculative biotechs which have already had huge runs like BioCryst and Novavax are not the way to go. Cramer prefers Gilead, which derives 80% of its earnings from its HIV treatment, but also has a swine flu vaccine called Tamiflu. Cramer thinks Gilead can only profit from the threat of swine flu.

CEO David Aldrich, Skyworks Solutions (SWKS)

Cramer often talks about the "mobile internet tsunami"; he thinks the trend will be as big as the push for PCs in the 90s. The Mobile Internet Index which Cramer created to measure the group is up 9% compared to the S&P 500's 3% gain.

Chipmaker Skyworks Solution's outlook is getting "much better" according to CEO David Aldrich and is being helped by increasing demand for iphones and netbooks. The company has been moving into the power supply business and provides chips for smart-power meters. The growing popularity of Wifi technology is good for Skyworks, which produces chips for Wifi. Cramer enthusiastically recommended Skyworks, along with the sector in general.

CEO Wes Card, Jones Apparel Group (JNY)

CEO Wes Card says Jones Apparel's conservative approach throughout the economic decline has served the company well; its cost-cutting measures, closing of 250 stores, tight control of inventory and balancing of its budget has brought the company $20 million in savings. Jones hasn't merely been hanging back cautiously, but has been growing; Jones is releasing its first designer retail label, Rachel Roy at Macy's (M). The internet, especially social networking sites, are spreading the news about this exciting new label.

Card was critical of the media which he says is too bearish on retail and doesn't look at the numbers correctly. Instead of being obsessed with same-store sales and top-line growth, reporters should instead look at the fact that selling less inventory at full price is better than selling more items at clearance sales.

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Comments

[fishluvrain:]

I can not believe that someone within the United States, in the Media, would advise people to not listen to the President, on any subject. No matter what administration, agenda or topic. The President is the primary leader of our country. Elected by Majority Vote. Whether you agree with the/any elected official, and in this case, the President, the listen is the correct thing to do. Or does Mr Cramer think he is above the leadership of the Government. Perhaps Mr. Cramer is clairvoyant. Or perhaps he would just rather the People of the United States would just disregard the opinions and policies of the President.

Sep 10 07:19 AM

[nutty buddy:]

Mr. Cramer knows that Mr. Obama does not have the support of the people on this issue, and that if he continues to pursue his original plans with any vigor at all, Mr. Obama risks becoming marginallized completely. Government of the people, by the people!

Sep 10 08:52 AM

[fran grady:]

Cramer just goes with established companies. You have to go out on the limb to pick the fruit. I have made more $$ with HGSI and NVAX then Cramers conservative picks.

Sep 10 09:21 AM

[User 283977:]

Fran Grady certainly knows more about the subject matter than Cramer - Cramer does not understand the ramifications of the ground breaking technology represented by NVAX, and he failed to even mention VICL. You need to understand what these two companies are doing in the context of H1N1 to understand the play.

The following link provides a good start:

seekingalpha.com/artic...

There are several people on SA that post on Swine Flu… look at those posts and review the information…

seekingalpha.com/insta...

Those posts provide a much deeper look at the Swine Flu play than looking at a technical chart and making decisions on buy and sell based on the PAST performance of a stock. If you want to predict future stock performance you have some idea of the underlying forces in play.

Yes, I own NVAX and VICL and I would own more if I had the money

Sep 10 11:19 AM

[Kaiser:]

Cramer, tells the truth when relating his past ,how he would rip off his clients with massive churning of their accounts Why anyone would take him seriously is beyond me

Sep 10 12:10 PM

[Michael Del...:]

Kaiser,

Cramer did not rip off his clients with massive churning. And Cramer never said that he ripped off his clients with massive churning. Cramers clients did very well (as did Cramer) and that is why more people wanted in his hedge fund than he could accommodate. People were turned away from Cramer Berkowitz.

If your dislike of Cramer causes you to believe that he is always wrong, then you have a closed mind and are missing investment idea opportunities. You should be listening to Cramer and Buffet and El Erian and CNBC and Fox Business and checking the Motley Fools and MSN Stock Scouter and Investors Business Daily and the Wall Street Journal, etc., etc. The more information you have, the better able you will be to make (and take full responsibility for) your own decisions. If Cramer bothers you too much, just turn him off. I find him interesting.

Sep 11 01:28 PM

[User 450241:]

cramer was harsh but meant no disrespect when he said ignore the president's statement. it was from a business POV that he made his call. and to nutty buddy, youre wrong as well, majority of the people supports the president on this. he won the majority that's why he is president, do you really think they dont support him in this? but they are being silent now unlike those ( many but not most ) who are against yet yells loud enough to create the impression there's more of them. i give credit to them for their passion and conviction ( not the extremes though ) and blame the silence of those who support the president. they want obama to finish this himself while watching in the sidelines. if in the next few days, if those who want this reform do not go to capitol hill and in greater numbers than the other side did last saturday, there's my proof that indeed they want obama to do it alone. heck, that's why they voted for him right? democratic leaders are to be blamed as well. no democracy will work if leaders are cowards ( to quote doonesbury ) but back to cramer, he wasn't talking about politics but the reality of business here. the white house had been talking with big pharma and insurance companies and they had to. that's just plain reality. right now, the chances of having a public option is almost nil, not because of loud yellers but the roaring sound of a tsunami called american capitalism...

Sep 13 09:07 PM

[gursharantt:]

Cramer recomended BCRX in 2005. Now BCRX is on the verge to get EUA and save many lives, he is against it. What kind of a person he is? i think he is stupid

Oct 22 10:48 PM