Segment 1: Bullish on Biotech, Part 2
Cramer said that the market was down today because energy prices went up, and the SEC removed the naked shorting rules that were protecting the banks recently. He recommended scaling into an oil or banking stock over the next few days, and said to stay away from the rail sector. He thinks that banks could go down as much as 40% because of weak links like Washington Mutual (WM), but likes biotech for the rest of the year. Today's biotech pick was Genzyme (GENZ). Cramer is bullish on the stock because it has several drugs that treat rare disorders, and these drugs have patent protection in the US and EU for several years. He also thinks that their strong drug pipeline could make the company a nice takeover target in the future. He put a price target of $92 on the stock, and he thinks it could go even higher on a buyout.
Cramer took phone calls on the following stocks:
Genentech (DNA): Cramer said to take profits because the caller was up 40%.
Medarex (MEDX): Cramer said that he needs to do some homework before making a decision on this stock.
Incyte (INCY): Cramer said this stock is too risky for him.
Segment 2: Your Stock Shopping List, Part 2
Cramer gave out his next stock that is doing well, but needs a pullback before he will buy it. The stock is Tyco (TYC), which was downgraded today because of its valuation, and Cramer agrees with the analyst. He wants you to buy the stock at $42, and said that it's too high at its current price of $44. Cramer likes the stock because its profit margins are strong, and it has good products like their valve business, and their security business that provides stable revenues. Cramer also likes their large buyback they just announced.
Segment 3: Lightning Round!
VisionChina Media (VISN): Cramer is bearish on Chinese stocks.
Coca-Cola (KO): Cramer is bullish on this stock because they seem to have raw costs under control and reported a good quarter.
Apple (AAPL): Cramer is bullish on the stock over the long term, but said to scale into the stock slowly on dips because the price is volatile.
Transocean (RIG): Cramer is bullish because the oil and gas sector has now dropped enough.
Linn Energy (LINE): Cramer is bullish on this stock.
Cal-Maine Foods (CALM): Cramer is bullish, but warned that you have to be careful because the stock is near its 52 week high.
iStar Financial (SFI): Cramer is bearish on this stock because it is too risky.
Meadowbrook Insurance (MIG): Cramer said that this is a good speculative play, but warned that you need to do your homework and be careful.
Segment 4: Interview with Agnico-Eagle Mines (AGM) CEO Sean Boyd
This is Cramer's favorite gold play, but it has gone down about 30% because of lower concerns about inflation, and poor earnings last quarter. They announced that their production will be lower for gold, copper, and zinc, all of which are doing poorly right now. Cramer wants to know if he would be better off buying the gold ETF (GLD) instead of this stock, and he asked the CEO for his opinion. Boyd said that they have seen large pullbacks in the price of gold before, and we are coming back to a stronger period for gold prices. He added that their higher costs reported in their last quarter was due to very low zinc prices, and said that they are a good gold stock to own because their average extraction cost is about $250 an ounce, and the company is better to own than an ETF because they increase production and reserves without diluting the stock. Cramer agreed, and said that he is bullish on AEM.
Segment 5: Mad Money Mail
Central European Distribution (CEDC): Cramer is bullish, but said there is some risk because of their exposure to Russia.
Nucor (NUE): Cramer said that he got behind this stock too soon and it continued to drop, but thinks it is done going down now.
Cleveland-Cliffs (CLF): Cramer is bearish because they have overpaid to take over a coal company.
Apache (APA): Cramer said that there are other natural gas companies that are cheaper.
Segment 6: Sudden Death!
Sanmina-SCI (SANM): Cramer is bearish on this stock.
First Solar (FSLR): Cramer is bullish if Obama wins the White House.
Archer Daniels Midland (ADM): Cramer is bearish on this stock.
