Segment 1: Profit from Medicare, Part 3
Cramer said that you need to stay away from any stock that is economically sensitive, and find ones that are safe. He then recommended another healthcare stock that will benefit from the new Medicare bill, Pediatrix Medical Group (PDX), which is the top billing service provider to neonatal intensive care units. Cramer likes it because it is near its 52 week low, and he thinks that Wall Street doesn't see the potential in the stock, or understand the company. The company's customers don't get Medicare, but the bill will set the rates that the company can charge at a higher level. He said that he believes that the company will grow at 13% this year, and put a price target of $62 on the stock.
Cramer took phone calls on the following stocks:
Biovail (BVF): Cramer thinks this is too dangerous right now.
Rite-Aid (RAD): Cramer thinks that this company took on too much debt, and that the bond holders will end up owning the company. He said to wait to buy Walgreen (WAG) or CVS (CVS) until that happens.
Segment 2: The Year of Natural Gas Update
Cramer recommended natural gas transmitter Spectra Energy (SE). It has 18,000 miles of pipeline in the U.S. and Canada, and its infrastructure is needed by almost every natural gas driller. Cramer likes it because it makes money on the volume of gas pumped through its pipelines, not the actual price of the gas. He also likes the 3.5% dividend yield and a stock buyback that the company is doing. Finally, Cramer is bullish because he thinks it will have a good growth rate, and will no longer trade at a discount to its peers. He put a price target of $32.84 on the stock.
Cramer took phone calls on the following stocks:
Occidental Petroleum (OXY): Cramer said that they are a great worldwide finder of oil, but he thinks it will go to $84 - $85 during this pullback.
Segment 3: Lightning Round!
Vale (RIO): Cramer is bullish in the long term, but he's concerned that they took out too much debt for an acquisition, and he wants to see what they do with it before recommending it.
Goodrich (GR): Cramer said that no airlines can afford to buy airplanes, so there is no demand for their product right now. He is bearish.
SkyWorks (SWKS): Cramer said to take profits now since you'll probably be able to get in lower down the road.
Harsco (HSC): Cramer said not to give up on this stock, and that he is a buyer.
Valero (VLO): Cramer is bearish on all refiners since they haven't been able to increase their prices to make any money.
Vectren (VVC): Cramer likes it because it has a good yield and is a safe energy distributor.
StanCorp (SFG): Cramer said that this is a safe financial, and he wants to hold onto it.
Enersis (ENI): Cramer is bullish on this Latin American utility.
Brown Formman (BF-B): Cramer said that this stock is dropping because Fortune Brands (FO) blew up, but that he is bullish on BF-B and wants to buy more.
HealthSpring (HS): Cramer said that he wants to stay away from this sector until after the U.S. elections.
Segment 4: Am I Diversified?
Segment 5: Wall Of Shame Update
Cramer is removing Blockbuster (BBI) CEO James Keyes from the Wall because the company backed away from its plan to buy Circuit City (CC) that Cramer thought was a bad idea. He moved Yahoo! (YHOO) CEO Jerry Yang to the top as well.
Segment 6: Sudden Death!
Charles Schwab (SCHW): Cramer is bullish.
Ship Finance International (SFL): Cramer is bearish.
Frontline (FRO): Cramer is bullish.
Stryker (SYK): Cramer is bullish.
