Segment 1: Profit from Medicare, Part 2
Cramer gave out his next stock that can make money off of the new Medicare bill making its way through Congress. His recommendation is Allscripts (MDRX). He likes it because the bill has incentives for using e-prescriptions by 2010, and this company will be the primary beneficiary. There also will be penalties for any doctors that refuse to switch from paper prescriptions, and there are handouts for doctors to make the initial hardware and software purchase needed to meet the requirements. The company's stock dropped $20 on news that a new product was very buggy, and Cramer thinks this bill is what will turn the stock around.
Cramer took phone calls on the following stocks:
Amedisys (AMED): Cramer said that he likes home health care, but he doesn't know if this is the right play.
UnitedHealth (UNH): Cramer said that he lost a lot of money in this stock, and he is done with it now.
Segment 2: Profit From Medicare, Part 2 Continued
Cramer recommended another stock that can profit from the new Medicare bill, ResMed (RMD). This company is part of a duopoly in the sleep apnea machine market. Cramer thinks that Wall Street has been overreacting to news that Medicare will begin competitive bidding for these machines because the company is growing overseas, and the company is undervalued. They also are in position to benefit from new rules about home testing that will make it easier to get a sleep apnea machine, and Cramer put a price target of $50 - $53 because of its growth rate. He ended the segment by telling people to wait for a pullback, but said that it's a buy.
Segment 3: Lightning Round!
Pep Boys (PBY): Cramer is bearish on this stock.
Brush Engineered Materials (BW): Cramer said to stay away from this airline related stock.
Suntrust Banks (STI): Cramer said to sell this on any rally.
Owens-Illinois (OI): Cramer said that he needs to see the next quarterly report before he will recommend it.
Exelon (EXC): Cramer is bullish on this stock.
Duke Energy (DUK): Cramer said to buy Con Ed (ED) or EXC instead.
Verizon (VZ): Cramer wants to buy this stock and AT&T (T) right now, but said that they were both contrarian picks.
Ener1 (HEV): Cramer thinks this speculative stock is a buy, but recommended Sociedad Quimica (SQM) as a better pick.
Wachovia (WB): Cramer is bearish on this financial.
EMCORE (EMKR): Cramer said that this speculative stock is not for him.
Segment 4: Clean Offshore Drilling Week Extra
Cramer said that he has received such a great response to his clean offshore drilling recommendations, that he is giving out one more. Today's pick is Bristow Group (BRS), which provides helicopters that transport workers out to oil rigs. Their profits are less cyclical because they have longer term retainer contracts, and they can pass fuel costs on to customers. Cramer thinks that their larger helicopters will be in higher demand as rigs are placed further and further offshore. Also, they make almost half their money overseas, and there is a helicopter shortage right now. Cramer gave a valuation of $68 based on the buyout of a competitor that was recently taken private. Cramer said to wait for a pullback tomorrow on higher oil and gas inventories before buying.
Segment 5: Mad Money Mail
Watts Water Technologies (WTS): Cramer said that he got this one wrong when he recommended it in the past, and he still doesn't like it.
Segment 6: Sudden Death!
Newfield Exploration (NFX): Cramer is bullish on this stock.
Intel (INTC): Cramer is bullish.
SAP (SAP): Cramer is bearish.
