Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday December 10.
CEO Interview: Dr. Stanley Crooke, Isis Pharmaceuticals (ISIS)
Isis Pharmaceuticals (ISIS) produces treatments that bind to RNA as a way of changing cell behavior to battle disease. It has 31 drugs in development, many for orphan conditions. The company has an anti-coagulant drug to prevent thrombosis, or blood clots, from within blood vessels. The stock has rallied 56% since Cramer talked to the CEO in October.
The anti-coagulant was given to patients undergoing knee replacement. These patients tend to suffer from blood clots. No other drug has been able to produce a 7 fold lower rate of blood clots, said CEO Stanley Crooke. When patients undergoing the surgery were pre-treated with the drug, the bleeding was reduced dramatically. Crooke thinks the drug has broad application and can be used to prevent repeat incidents of heart attacks or strokes. "This is phenomenal," said Cramer. "Isis is going higher."
Biotech Winners: Celgene (NASDAQ:CELG), Agios Pharmaceuticals (NASDAQ:AGIO), Bluebird (NASDAQ:BLUE), Kite Pharma (NASDAQ:KITE). Other stock mentioned: Health Care Select Sector SPDR ETF (NYSEARCA:XLV)
The American Society of Hematology concluded its meeting on Wednesday. Agios Pharmaceuticals (AGIO), which presented at the conference, makes targeted cancer drugs that destroy cancer cells. The stock has gained 368%, and Cramer would buy on a pullback. Bluebird (BLUE) produces treatments that correct genetic problems and has received positive data on its drugs. The stock rose 72% on Wednesday. Kite Pharma (KITE) is developing immunotherapy for lymphoma. It is planning to do a secondary, and this may provide a buying opportunity. Celgene jumped 4 points because it released positive data on Revlimid. It has partnered with many hot new biotechs, including Agios and Bluebird. Cramer called Celgene an "incubator for exciting new therapies." However, he would wait for a pullback in Celgene.
Cramer took some calls:
XLV (XLV): The healthcare sector is a good place to be on the way down.
The market is divided between the joy of consumers and the pain of producers. On Wednesday, the negative side of the story won out, with the Dow diving 268 points. Strong numbers came from Costco (COST) and Restoration Hardware (RH), mainly because consumers are saving money on gas. Phone companies are involved in a price war, which is also good for the consumers. However, as telco companies might slow down their spending, this is bad for companies like Cisco (CSCO).
There is concern about countries that cannot pay off their debts. Emerging markets need to stabilize, or funds levered to them will be strapped. If oil goes below $60 the producers' credit pain may overwhelm the consumers' gains.
Cramer took some calls:
Triquint (TQNT) is merging with RF Micro Devices (RFMD). Cramer likes this combination, although both might come in a little.
Verizon (VZ) yields 4.7%, and is likely to go to a 5% yield. Cramer would buy it down there.
The upside in oil has been obliterated, said Cramer. Oil and oil-related stocks make up 12% of the S&P 500, but that doesn't mean the other 88% does better with extremely low oil. However, companies that consume oil will get a boost to their earnings per share. Not all oils will be taken down, but those who can't afford to cut down on drilling, took on a lot of debt and have not hedged production costs will be hurt. Non-producers levered to oil may see declines, but it is hard to know which ones are going to tumble. Oil company creditors are stocks to stay away from. Cramer would also sell junk bond funds. Boeing (BA) could suffer, because lower oil prices mean that people will be less interested in its fuel efficient planes. Tesla (TSLA) has been hit perhaps for the same reason.
Cramer took a call:
National Oilwell Varco (NOV) is not done going down. Analysts need to downgrade and cut numbers before this can be bought.
CEO Interview: Richard Thompson, Freshpet (NASDAQ:FRPT)
Freshpet (FRPT) produces refrigerated, fresh pet food. It came public recently and roared 27%, but since then, the stock has dropped below where it was on its IPO. However, it reported a solid quarter. CEO Richard Thompson said his company avoids competition because it specializes in refrigerated food. The company uses real chicken and real beef. The cost of the food is higher, but the target customer is one who is willing to pay more for healthy pet food. "We are disrupting the pet food category," said Thompson.
Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.