He said you can now look at Cepheid (NASDAQ: CPHD). The company tests for staph infection. The other player is Becton, Dickinson (NYSE: BDX) and it is up 25% since his recommendation there. It is also too big and the Veteran's Administration contract won't matter to BDX. Cepheid would benefit greatly if they win. Cramer says he has no idea if they will be selected or not, but he thinks this can go up from here even without the deal. CPHD is part of the Anthrax Test Consortium. Sales last year were $82+ million and its market cap before the pop here was $598 million. Cramer thinks this one could be a cheap acquisition for anyone wanting to get into the testing area. CPHD just popped 9% after-hours to $11.90. The 52-week trading range is $6.50 to $10.58. This is also close to the five-year high.
Cramer did note that Gilead Sciences (NASDAQ: GILD) was his older biotech pick for the year, and he thinks it is still a good investment. He was also positive on Array BioPharma (NASDAQ: ARRY) in a call-in, but only as a speculation instead of an investment for the long-haul.
Cramer said that he is also a cynical and skeptical man, but sometimes you need to trust people to make money. Some CEOs can make you more money if you take what they say at face value even if you bet against them. Some CEOs deserve the benefit of the doubt. Over the next five days Cramer is doing the "benefit of the doubt CEO list" where the companies can still be bought based on the CEO trust even if they had bad news. If you did this with Coach last year like Cramer has noted so much you would have doubled your money.
His NEW "benefit of the doubt" list, Cramer is picking VF Corp. (NYSE: VFC)'s Mackey McDonald. If they have bad news you can buy the stock. He sold his lower margin business and they were puzzled as to why the stock fell when that happened. Now it is up $8 from the drop and the stock is higher than before the sale of the unit.
Jon C. Ogg
March 26, 2007
Jon Ogg does not own securities in the companies he covers.
Cramer said that he is also a cynical and skeptical man, but sometimes you need to trust people to make money. Some CEOs can make you more money if you take what they say at face value even if you bet against them. Some CEOs deserve the benefit of the doubt. Over the next five days Cramer is doing the "benefit of the doubt CEO list" where the companies can still be bought based on the CEO trust even if they had bad news. If you did this with Coach last year like Cramer has noted so much you would have doubled your money.
His NEW "benefit of the doubt" list, Cramer is picking VF Corp. (NYSE: VFC)'s Mackey McDonald. If they have bad news you can buy the stock. He sold his lower margin business and they were puzzled as to why the stock fell when that happened. Now it is up $8 from the drop and the stock is higher than before the sale of the unit.
Jon C. Ogg
March 26, 2007
Jon Ogg does not own securities in the companies he covers.
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