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Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday July 1.

Allscripts (NASDAQ:MDRX)

The Medicare Bill is expected to be bullish for the healthcare industry, and Cramer is devoting the week to focusing on which companies will benefit the most. The Bill is expected to give incentives for using electronic prescriptions, and a main beneficiary will be Allscripts which has a quarter of all doctors in the U.S in its database. There is plenty of room to grow, because only 2% of all prescriptions were sent electronically last year, and the e-prescriptions are expected to grow 400%. Recently the company has been hit hard by poor execution and problems with its electronic healthcare platform, but Allscripts says it has fixed the problems. The stock trades at 18 times its earnings, in spite of a 23.5% long-term growth rate, and Cramer expects the stock to gain 44%.

ResMed (NYSE:RMD)

ResMed, which along with Respironics, controls 40% of the market for sleep apnea equipment, is another stock that should benefit from the Medicare bill. The stock has suffered recently from news Medicare will try to bring down the price of medical equipment through competitive bidding, but Cramer thinks The Street overreacted and notes the second round of bidding has been postponed to 2009. ResMed will benefit from increased awareness and diagnosis of sleep apnea and produces machines that aid in diagnosing the problem at home whereas in the past, patients had to spend the night in a sleep lab. The market is currently only 10% penetrated, and Cramer thinks ResMed could jump to $50. Since it has risen 7% on takeover rumors, Cramer would wait for a pullback before buying.

Bristow (NYSE:BRS)

Cramer revisited his offshore drilling theme to recommend Bristow, a company that uses helicopters to transport services offshore rigs. As rigs venture to deeper waters and the war in Iraq continues, there will be more demand for Bristow's services, especially given the helicopter shortage. The company has 77% exposure overseas and expects $1.5 billion in revenue although its market cap is a mere $1.1 billion. Cramer thinks this $48 stock could be worth $68, and would wait until after the oil inventory number on Wednesday before buying BRS.

Mad Mail: Watts Water (NYSE:WTS), Hornbeck Offshore (NYSE:HOS), Andarko (NYSE:APC), Nabors (NYSE:NBR), Transocean (NYSE:RIG)

Cramer admitted he made an error in recommending Watts Water which was more levered to housing than he thought. He told the next viewer that HOS, APC, NBR and RIG are all buys.

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Source: Prescription Prediction for Allscripts - Cramer's Mad Money (7/1/08)