Cramer's Mad Money - The Raging Bulls Of Biotech (9/17/13)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday September 17.

Celgene (NASDAQ:CELG), Regeneron (NASDAQ:REGN), Gilead (NASDAQ:GILD), BioMarin (NASDAQ:BMRN)

Cramer looked at the charts of successful biotechs with the help of technical analysis from's Bob Lang.

Celgene (CELG) has had an amazing run since late August on high volume. TheMACD momentum indicator made a bullish crossover pattern. It is in overbought territory, but Lang thinks it is an "embedded" overbought stock, meaning that it can continue to go higher. Lang would wait for a pullback to the 50 day moving average before buying.

Regeneron (REGN) broke out to a new all time high and is showing a bullish crossover pattern. Lang notes that REGN's pullbacks to the floor have support (currently at $275) and have been buying opportunities.

Gilead (GILD) just keeps going higher almost in a straight line and on high volume. This stock can keep roaring higher.

BioMarin (BMRN) broke out over its ceiling resistance and has pulled back since. Both Lang and Cramer think it is currently a buy.

CEO Interview: Chip Johnson, Carrizo Oil & Gas (NASDAQ:CRZO)

Carrizo Oil & Gas (CRZO) is a relatively small player in the oil and gas space. It is selling off assets and is cleaning up its balance sheet. The stock has risen 70% since Cramer last spoke to CEO Chip Johnson in February. The company manages to be cash positive while cutting into the debt. CRZO made substantial acquisitions when it made the transition from gas to oil, and now it is selling less productive assets, including those that produce only dry gas. When asked if CRZO is a potential takeover target, Chip Johnson responded, "I'm sure someone is studying us. We are trying to grow as fast as we can before anything like that happens." Even though CRZO is at its 52 week high, Cramer urged viewers to "look at the market cap. The market cap is not big enough for the opportunity."

CEO Interview: Jean-Jacques Bienaime, BioMarin

BioMarin specializes in enzyme replacement therapy for very rare diseases. It has a treatment for MPS, a disorder that causes cellular damage and PKU. While the company can charge more for these orphan drugs, ultimately, the treatments save the system money and saves lives. The stock is up 245% since Cramer got behind it, and has risen 70% since February, when CEO Jean-Jacques Bienaime last appeared on Mad Money. The CEO discussed drugs in the late stage pipeline. "This is a very strong major drug company that you will be thinking about for many years," said Cramer.


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