Cramer's Mad Money - What We Learned From the Goldman Hearings (4/27/10)

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Includes: CAT, CELG, GS, HAL, MDT, SLB, WFT
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday April 27.

What We Learned from the Goldman Hearings (NYSE:GS)

The Goldman Sachs (GS) hearings were "awful for the securities industry and embarrassing for Goldman," said Cramer. Although he had been defending his former employer at the outset of the allegations, it seems that, according to information revealed at the hearings, Goldman might have "shot against their very own clients."

The answer is not to retreat from stocks, but not to depend on others and to go in armed with information. Cramer has always advocated doing homework before buying a stock and now more so than ever. Every investor should be able to describe what a stock, bond or even CDO does in three sentences. If he can't do this, the investor should put his money in something he actually understands. So while many people out there are taking advantage and bending the rules, "You can still play without getting played – as long as you analyze stocks yourself....you will never ever be a victim.”

Given Imaging (GIVN): Give It Time

Colon cancer is a devastating, widespread illness that unfortunately can return if patients don't have regular checkups. However, these checkups are not easy or painless, but involve painful and invasive colonoscopies. The procedure is so unpleasant that it is estimated that only 10-25% of all colon cancer survivors have them - a dangerously low number.

Given Imaging (GIVN) has developed the PillCam, a video capsule that can be swallowed and allow doctors to see the entire gastrointestinal tract. The PillCam is a revolutionary way to monitor the progress of colon cancer patients. It is expected to be approved in Europe later this year, and trials are planned in the States for the latter half of 2010. In addition, Given reported a strong quarter and has a clean balance sheet, but according to the technicals and the fundamentals, investors should give Given time for a pullback first. The stock will likely face a short-term weak demand and is expected to report a less-than-stellar quarter. However, if investors buy on that pullback, they are likely to see the stock run to $27 (it is currently at $21.68.) Cramer told viewers to take note of the earnings call on May 11 and to look for a good entry point for Given.

Mad Mail: Celgene (NASDAQ:CELG), Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), Weatherford (NYSE:WFT), Caterpillar (NYSE:CAT)

The decline in Celgene's stock price has nothing to do with the company, said Cramer, but with the selloff in healthcare as investors move away from healthcare into cyclicals as the economy improves. A viewer asked why Cramer hasn't been talking about Halliburton (HAL) lately, and he replied that he has been talking up Weatherford (WFT) as a smaller version of Schlumberger (SLB), but he also likes Halliburton, which had a "terrific" earnings report and added "management is more bullish than I've heard them in years." Cramer would not sell Caterpillar (CAT) because he thinks it could have "a multi-year move."

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