Cramer's fallen angels

Tonight on CNBC's MAD MONEY, Cramer reviewed some fallen angels that can make you "mad money."

He said that VF Corp. (NYSE:VFC) last week lost 7% on the guidance coming in right after it sold off a low-margin unit. He said that is too much. He said it will grow 8% annually and 5% internationally. Then it can go back up to where it was, easily. And the way the company is followed on the street, you could see many upgrades on it. He would be a buyer ahead of the February 6 earnings report. Even though he already interviewed the CEO last week, this one popped 1% to $74.70 after Cramer reviewed the stock.

Another 'Fallen Angel' is Amgen Inc. (NASDAQ:AMGN) after it got crushed last week. He said this is much ado about nothing. The headline risk was that Aranesp was causing deaths and, while it was scary, it wasn't the blow-up because the patients all were active cancer patients that were no longer taking chemo or undergoing treatment. The $4.30- to $4.50-per-share guidance is very acceptable considering they are conservative. The earnings growth is more than the negatives. Amgen is also on the offensive against Roche Holdings (Other OTC:RHHBY) on a patent case. The pipeline has an Imclone Systems (NASDAQ:IMCL) competitor, and the phase III bone drug could be a big blockbuster. He thinks this is the second-best drug play in the world behind Genentech Inc. (NYSE:DNA), and all the bad news is behind it. This is the one we noted last week that is no longer comparable to biotechs and is trading like a plain jane drug stock. AMGN traded up 1.25% to $70.85 in after-hours trading.

Jon C. Ogg
January 29, 2007