Jim Cramer's Mad Money, 12/17/07: Visibility = Stability

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Includes: BMRN, FSLR, MHS, RIG
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday December 17. Click on a stock ticker for more analysis:

First Solar (NASDAQ:FSLR)

Cramer suggested looking for stocks with visibility in this dismal environment, since these kinds of stocks are usually the first to recover. His first pick is First Solar, which rose 387% since his initial recommendation in the spring, has recently dipped and can be bought. The company doesn't rely on expensive silicon wafers like other solar energy companies. It has recently made some contracts which will mean "huge amounts of money" for FSLR. The company is poised to announce its first U.S. utility in 2008, which will mean an almost certain upside for the stock.

Medco Health Solutions (NYSE:MHS)

Medco Health Solutions has "the kind of visibility investors should kill for," said Cramer. This pharmacy benefit manager profits from drugs going generic, and in the next five years, $77 billion worth of drugs will go off patent. The company has a $6 billion window of profit opportunity, and if the stock price drops from $98.42 to the low $90s, Cramer expects to see substantial buybacks. Cramer said this defensive stock is perfect for the current market, and would build a position gradually.

Related: Tradermark gives the bullish case for Medco Health Solutions.

Transocean (NYSE:RIG)

This underwater driller is the "principal beneficiary" of high oil prices and has contracts up to 2010 and 2012. RIG recently completed its "anticompetitive" merger with GlobalSantaFe and now has more bargaining power. Given the backlog in building rigs, Transocean can charge $600,000 a day for renting equipment.

Related: Jonathan Liss reports RIG topped estimates on increased rig rates.

CEO Interview: Jean-Jacques Bienaime, BioMarin Pharmaceutical (NASDAQ:BMRN)

BMRN recently gained FDA approval for its drug Kuvan, which treats phenylketonuria [PKD]. Jean-Jacques Bienaime explained the importance of the Kuvan, the only treatment available for PKD which can cause neurological problems and retardation. He expects the treatment to be covered by insurance companies with a minimal co-payment of around $600 a year. Cramer considers BMRN a good idea as a long-term speculative play.

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