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

by: Miriam Metzinger

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

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