Cramer calls bottom on some medical stocks

On today's STOP TRADING segment on CNBC, Jim Cramer said many medical stocks have bottomed out; even some where he had been "long and wrong."

St. Jude Medical Inc. (NYSE:STJ) would be an ideal buyout candidate if you believed the bad news was priced in the shares, according to Cramer, who urged people to buy both options and shares. Cramer even said Amgen Inc. (NASDAQ:AMGN) and Boston Scientific Corp. (NASDAQ:BSX) might be worth considering since their shares aren't being hurt by negative news. He has been defending Amgen for some time. Here is something he noted on it back in late January when he helped push it up to $70.85. Shares are now down to $60.00 and have dipped down close to $55.00. Boston Scientific and St. Jude are both up more than $2.00 from their lows.

His positive call on Boston Scientific has proven right. The question is whether lightning will also strike with St. Jude, up about 14% this year.

Cramer noted Costco Wholesale Corp. (NASDAQ:COST) and Sears Holdings Corp. (NASDAQ:SHLD) positively. He remains negative on homebuilders, arguing that increased housing starts results in more inventory they can't sell.