Cramer's Mad Money - Allergan's Beauty Is More Than Skin Deep (5/23/11)

Includes: AGN, CKSW, CQP
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV program, Monday May 23.

CEO Interview: David Pyott, Allergan (NYSE:AGN)

Allergan (AGN) is no longer just a vanity play. The company has moved beyond aesthetics to find multiple uses for its Botox product. Over half of Botox use is therapeutic, as it has shown to be effective in treating migraines and bladder problems. Allergan also has a healthy eyecare segment, with a treatment for dry eye and retinal diseases. The company has double digit earnings, is growing rapidly in Europe and emerging markets. While the lap band business has been lagging the rest of the segments, David Pyott expects to see the company's obesity treatments taking market share soon. Cramer thinks Allergan has all the advantages and virtually none of the disadvantages of other healthcare plays, since it is not vulnerable to patent expiration or Medicare and can invest large amounts of money into Research and Development.

Cheniere Energy (NYSEMKT:CQP)

Cramer thinks it is "embarrassing" that a company based abroad, Cheniere Energy (CQP), is building a terminal in the U.S. to export natural gas. After all, natural gas is a safe, cheap, environmentally friendly alternative to diesel. However, since the government has not yet passed legislation to increase the number of natural gas-run vehicles on the road and prefers electric and ethanol, it looks like other countries will reap the benefits of using natural gas. If the government would change its policy, more people would be put to work, the skies would be cleaner and the dependence on foreign oil would be reduced. "We (as a country) look pretty dumb," Cramer said.

CEO Interview: Moshe BenBasset, ClickSoftware Technologies (NASDAQ:CKSW)

Cramer took a look at ClickSoftware Technologies (CKSW) after a viewer asked about the stock. This is a $9 stock with a $275 million market cap, a speculative play that could turn into a junior growth stock. Cramer expects a pop in the stock after its presentation in New York on Monday, and he told viewers not to chase it up, but to wait for it to drop if it rises on the news.

CKSW is a field service optimization company and its software helps companies manage employees and make scheduling decisions. The market opportunity is huge and it has used smartphones and the Tablet to its advantage to aid workers and managers who need to do their jobs away from office settings. The company's recent quarter was strong and it issued its first dividend at 3.2%. CKSW sells at 19 times earnings with an 18% growth rate. The company's software facilitates security at airports and its clients are the three largest utilities companies in California. Cramer thinks CKSW is a great spec with a long-term growth story.


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