Cramer's bank and biotech picks

Posted Apr 23rd 2007 3:50PM by Jon Ogg
Filed under: Analyst Reports, Bank of America (BAC), Comerica Inc (CMA), Barclays plc ADS (BCS)

Jim Cramer had several picks on the Stop Trading! segment on CNBC today. The most noteworthy were his banking picks based on the Barclays (NYSE: BCS) and ABN AMRO (NYSE: ABN) merger and the biotech picks based on the AstraZeneca (NYSE: AZN) acquisition of MedImmune Inc. (NASDAQ: MEDI).

On Barclays buying ABN AMRO, Cramer said the takeaway could potentially be a higher price if a competing bid looks close, and that can help other bank values. SunTrust Banks Inc. (NYSE: STI), Fifth Third Bancorp. (NASDAQ: FITB), and Comerica Inc. (NYSE: CMA) were all noted as potential deals. If you go back and peer through the valuations of the larger regionals, these all come up as potential names that could be acquired; and noted that Bank of America (NYSE: BAC) is addicted to buyouts.

On MedImmune, Cramer thinks that the overpayment by AstraZeneca means a potential higher valuation adjustment for Cephalon Inc. (NASDAQ: CEPH) and Celgene Corp. (NASDAQ: CELG).

Cramer also rushed in a "I Like Coal too," and Arch Coal Inc. (NYSE: ACI) was his name.

Tags: ACI, CELG, CEPH, CMA, FITB, STI