Cramer's "Ultimate Defensive Portfolio" of Medical Stocks
Jon C. Ogg
24/7 Wall St.
On tonight's MAD MONEY on CNBC, Jim Cramer said he's seen enough earnings from big companies and he is fed up with the Fed sitting around while the US economy is slowing. He wants to show you stocks that are safe and ones that will make you money. This is his "Ultimate Defensive Portfolio" of 3 stocks for tonight. He is looking for companies still growing that are not growing only because of overseas growth. He is unveiling 3 medical related:
CR Bard (BCR) is one he's been behind since 2005, and he is still behind it. He thinks this is a great medical device maker that has 65% of the peripherally inserted catheters and leaders in other catheters. He also likes their biopsy technology and the angioplasty operations. They are mostly #1 or #2 in their markets. In 2005 he thought it would be a takeover target, and he thinks it is still a takeover candidate in 2007. Anyone wanting to buy this company has to do it before the Democrats get to change the merger rules. This one is also in a group that the healthcare spending won't hit.
Jim Cramer's Second defensive stock on CNBC's MAD MONEY in medical devices as a portfolio of last resort is Becton Dickinson (BDX). It is a safe traditional medical device and diagnostics company. They even invented a longer needle because of Americans getting fatter and needing longer needles. The Genome and Tripath acquisitions are going great and they are into screening for cancer. It is up 31% since he first recommended it in July, but their increased guidance will drive this stock higher. The analysts are 4 buys and holds, so he thinks that ratio of 2:1 analysts being negative will create upgrades and the company will be able to beat estimates. Cramer thinks the analysts are holding back so they can cover other names.
Jim Cramer's third pick as a defensive medical industrial complex stock that he thinks can't get hurt by the economy is Baxter International (BAX), but he would only buy it if it pulls back right now. He likes this as a "best of breed" compared to a "worst of breed" stock like Boston Scientific (BSX). Hemophelia, dialysis, cancer treatments, immune disorders, and many other things. Cramer said that Boston Scientific (BSX) paid too much for Guidant and is having to spin off a good area of future operations just to pay for debt.
Source: 247WallSt.com
RELATED READING:
- Cramer Looking For the Next Dendreon
- Jim Cramer on Dendreon
- Cramer Calls Out His Next Biotech Picks
- Nastech Pharma: Cramer Thinks Biotech Zombie Worth Second Look
__________________________
24/7 Wall St.
On tonight's MAD MONEY on CNBC, Jim Cramer said he's seen enough earnings from big companies and he is fed up with the Fed sitting around while the US economy is slowing. He wants to show you stocks that are safe and ones that will make you money. This is his "Ultimate Defensive Portfolio" of 3 stocks for tonight. He is looking for companies still growing that are not growing only because of overseas growth. He is unveiling 3 medical related:
CR Bard (BCR) is one he's been behind since 2005, and he is still behind it. He thinks this is a great medical device maker that has 65% of the peripherally inserted catheters and leaders in other catheters. He also likes their biopsy technology and the angioplasty operations. They are mostly #1 or #2 in their markets. In 2005 he thought it would be a takeover target, and he thinks it is still a takeover candidate in 2007. Anyone wanting to buy this company has to do it before the Democrats get to change the merger rules. This one is also in a group that the healthcare spending won't hit.
Jim Cramer's Second defensive stock on CNBC's MAD MONEY in medical devices as a portfolio of last resort is Becton Dickinson (BDX). It is a safe traditional medical device and diagnostics company. They even invented a longer needle because of Americans getting fatter and needing longer needles. The Genome and Tripath acquisitions are going great and they are into screening for cancer. It is up 31% since he first recommended it in July, but their increased guidance will drive this stock higher. The analysts are 4 buys and holds, so he thinks that ratio of 2:1 analysts being negative will create upgrades and the company will be able to beat estimates. Cramer thinks the analysts are holding back so they can cover other names.
Jim Cramer's third pick as a defensive medical industrial complex stock that he thinks can't get hurt by the economy is Baxter International (BAX), but he would only buy it if it pulls back right now. He likes this as a "best of breed" compared to a "worst of breed" stock like Boston Scientific (BSX). Hemophelia, dialysis, cancer treatments, immune disorders, and many other things. Cramer said that Boston Scientific (BSX) paid too much for Guidant and is having to spin off a good area of future operations just to pay for debt.
Source: 247WallSt.com
RELATED READING:
- Cramer Looking For the Next Dendreon
- Jim Cramer on Dendreon
- Cramer Calls Out His Next Biotech Picks
- Nastech Pharma: Cramer Thinks Biotech Zombie Worth Second Look
__________________________
posted by Nico at
10:40 PM
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