April 19, 2006
'Pain to Gain'
DJO (DJ ORTHOPEDICS INC)
There was a great article in this weekend's New York Times. It's an
article that could have made you a lot of money, if only the times, as usual,
hadn't left out the takeaway.
The title is: 'Baby Boomers Stay Active, and So Do Their Doctors.'
it's about how my cohort keeps exercising, even though the wear and tear on our
bodies leads to a ton of sports injuries. After 50, the human body isn't
really designed to do much in the way of exercise.
Great article. But true to form. The times printed all the news
that was fit to print, but they didn't give you all the stocks that are fit to
buy! That's why you come to Cramer. And it's not just because I
know a lot about stocks.
I'm also one of the people that they talk about in the darn article. It's
practically in my contract that I’ve got to exercise to stay in shape for this
show. I had to lose 10 pounds before i could even start Mad Money.
And I’ve had the sports injuries too. So I know how this works from the
inside.
The leading company in the sports medicine business, for those of you waiting
for the punch line, is DJ orthopedics (DJO)!
Both my experience with stocks and my experience with two messed up knees,
confirm that this is the stock I think you should buy off the times article.
DJO is your one-stop shop for all kinds of bracing. You go here when
things aren't quite severe enough to require surgery, or when you are
recovering from surgery. They get you on both ends.
The most important part of this story is that DJO just closed on an acquisition,
which I think is the most important knee scope in the world.
Hey, this is the be-all and end-all; this is the Moby Dick of knee scope
accessories. The Aircast! This allowed me to get back to work the
day after surgery, without crutches I might add.
But you never ever buy a stock because you like the product! That's your
starting point; it's your inspiration.
From there you've got to do your homework - the house of pain - but it keeps
you out of the house of pain.
DJO moved a lot when the announcement was made. That's because buying Aircast
was a great strategic move. I think earnings this year will be neutral,
but i think next year, DJO earnings will show nice growth.
The bottom line: Learn to read like Cramer, and you'll be able to do this
analysis yourself. Until then, buy DJO!
