Cramer's Mad Money - Warnaco Should Say 'Goodbye' To Calvin Klein (9/18/12)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday September 18.

Warnaco Group (WRC), Phillips-Van Heusen (NYSE:PVH)

Warnaco Group (WRC) has been a struggling company since picking itself up after declaring bankruptcy a decade ago. The company owns Speedo and Olga brands and licenses Calvin Klein. On its recent conference call Phillips-Van Heusen (PVH) noted that Calvin Klein jeans and underwear have been underperforming, and are down 10% while the other CK brands are up 5%. WRC is primarily responsible for this decline, and in the past, PVH has discussed its desire to purchase its CK assets from WRC to have more autonomy in managing the CK brand. Cramer thinks WRC should sell its CK assets to PVH and unlock a potential $3 billion in assets. A Warnaco split-up would be the best strategy for both companies.

Off The Charts. Where Is The S&P 500 Headed? Stocks mentioned: Cirrus Logic (NASDAQ:CRUS), Apple (NASDAQ:AAPL), Clearwire (CLWR)

Carolyn Boroden, of, predicted the last move in the S&P 500 on June 4th. She spotted the bottom in the index and saw a 10% rally when few were expecting such an upside. Boroden sees more upside for the S&P 500, but this time, she is more cautious, and believes the index is due for a short-term pullback. The S&P 500 recently peaked close to the 1474 ceiling. Boroden suggests buying on a pullback, but only if it holds above1396. If the S&P 500 breaks out to 1474 on the following rally, Boroden predicts it could reach 1553.

Cramer took some calls:

Cirrus Logic (CRUS) has been an amazing stock, but Cramer thinks Apple (AAPL) is still cheaper.

Clearwire (CLWR) is a speculative stock Cramer thinks investors should avoid.

Biotechs To Look For and Avoid At the UBS Global Life Science Conference: Allergan (NYSE:AGN), Gilead (NASDAQ:GILD), Celgene (NASDAQ:CELG), Isis Pharmaceuticals (ISIS), ARIAD Pharmaceuticals (NASDAQ:ARIA), NPS Pharmaceuticals (NASDAQ:NPSP)

With conference season in full swing, Cramer discussed stocks to watch at the UBS Global Life Science Conference, starting on Wednesday.

Allergan (AGN) should discuss Botox, its migraine business, competition and what else it has in the pipeline. The stock could rise substantially on good news.

Gilead (GILD) is priced too low. The company should discuss its Hepatitis C drug. Although the stock has risen lately, it could go significantly higher, since much of the competition has dropped out.

Celgene (CELG) should discuss Revlimid and new indications. The stock has been on a tear but good news about upcoming approvals and its pipeline should bring the stock higher.

Isis Pharmaceuticals (ISIS) and Ariad (ARIA) are two "hot" biotechs that should be avoided because they are priced too high. Isis has risen 100% year over year.

NPS Pharmaceuticals (NPSP) is Cramer's favorite speculative biotech stock featured at the conference. It has only risen 25% so far this year and has two orphan drugs, one to treat short bowel syndrome and one to treat hyperparathyroidism. Investors have a month before the FDA releases results to buy NPS.


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