Segment 1: Interview with Google (GOOG) CEO Eric Schmidt
Despite the drop in the Dow today, Cramer is still seeing some good news in the market. He thinks the fact that Macy's (M) was up after reporting a mediocre quarter, financials are still strong, Toll Brothers (TOL) feels that the market is turning around, and tech has some momentum, led by Apple (AAPL) and Applied Materials (AMAT).
Cramer then interviewed Eric Schmidt, CEO of Google (GOOG) about their future, and Schmidt is still excited about the growth of the Internet, and said that people are uploading 13 hours of content to YouTube every minute. He also thinks the use of the Internet on mobile phones will explode, and is looking forward to their Android platform. Cramer ended the interview with a discussion on how cloud computing will change the software industry, and how Google expects to compete in that sector in the future.
Segment 2: Bullish on Biotech, Part 3
Cramer's biotech pick today is vertex Pharmaceuticals (VRTX), which has been underperforming the rest of the biotech sector, but said that it's a bad house in a great neighborhood, and he thinks it will be able to catch up soon. It took a hit last month because of competition with a new drug from Schering Plough (SGP), but Cramer thinks that Wall Street overreacted. It will release drug information at several conferences over the next several months about its new potential blockbuster drug, and Cramer thinks that stock will jump up on this news. Also, this is another potential buyout target because it is so cheap.
Cramer took phone calls on the following stocks:
Glaxo Smith Kline (GSK): Cramer is bearish because he doesn't like their drug pipeline very much.
Merck (MRK): Cramer is bullish, but likes biotech more.
Segment 3: Lightning Round!
AccuRay (ARAY): Cramer is bearish on this stock.
AMD (AMD): Cramer is bullish on the short term, and thinks the stock could jump to $7 or $8.
ImClone (IMCL): Cramer said to take your profits since the money has already been made from the Bristol Myers (BMY) offer.
Titan Machinery (TITN): Cramer is bearish, and said that Caterpillar (CAT) is a better stock.
Covance (CVD): Cramer is bullish on this stock, and said that he likes Thermo Fisher Scientific (TMO) in that sector as well.
Petroleo Brasileiro (PBR): Cramer is bullish on this stock and said to buy it right now.
Segment 4: Your Stock Shopping List, Part 3
The next stock that Cramer likes after earnings season, but he wants to wait for a pullback on is Orbital Sciences (ORB). Cramer thinks that this is a defense stock that will still be OK even if the Democrats get into the White House and maintain control of Congress. It has a 17.5% long term growth rate, a $4.2 billion backlog, it beat earnings estimates by 52% last quarter, and raised guidance for the rest of the year. Cramer said that any time McCain looks weak in the polls, ORB stock will drop, giving you a buying opportunity. Cramer put a price target of $24 on the stock, and said to remain patient in this market.
Segment 5: Interview with Equitable Resources (EQT) CEO Murry Gerber
Cramer thinks that the market has overreacted to the drop in prices of natural gas by knocking this stock down 33% from its highs in May, especially since this company makes a lot of money with a pipeline in Appalachia, which isn't dependent on the price of natural gas. Cramer asked Gerber for his opinion, and he agreed with Cramer, and added that demand for natural gas is still strong, and that natural gas is cleaner and cheaper than oil, so this is a good buying opportunity. The company also does natural gas drilling, so it has a diversified source of revenues. Cramer said that he thinks the natural gas sector was oversold, and that now could be a good time to buy this stock.
