Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday January 14. Click on a stock ticker for more analysis:
Cramer declared he is dedicating programs this week to the tech sector, which took an unfair beating last week. He likes GLW, HPQ, GOOG, RIMM, INTC and expects an upside surprise from MSFT. Cramer focused on EMC, a stock which he points out is cheap and has hidden assets, although it has been down 34% since October and has "singed a lot of people for no good reason." He pointed out 40-45% of EMC's business is overseas and it has a strong product line. EMC is developing storage that uses less energy than non-flash and is easier to access, but this product is not coming out until the third quarter. EMC also has a significant stake in VMware, and in February, EMC can begin selling shares. Cramer thinks EMC could rise to $21 or $23.87.
In spite of the momentary optimism spawned by yesterday's rally, Cramer says it won't be long before the bearish sentiment returns, and he would stock up on defensive plays. Cramer focused on CROs, or contract research organizations which outsource valuable medical research for biotech and pharmaceutical companies. He likes CRL which specializes in early testing and PRXL, which conducts late stage studies. Cramer's favorite CRO is CVD, which does both early and late phase testing, has strong customer base, a clean balance sheet, $250 million in cash, and great potential revenue. He predicts a 33% upside for CVD and suggests buying it on any weakness. Other healthcare stocks Cramer would buy are NVS and CVS.
CEO Interview: Zan Guerry Chattem (CHTT)
Cramer praised Zan Guerry for the 107% rise in his stock since April. Guerry discussed the success of the five brands CHTT acquired from Johsnon & Johnson and predicts the company will continue to grow with further acquisitions. Cramer commented the stock is a "winner" and CEO Zan Guerry is "money."
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