Cramer’s last Fallen Angel on CNBC’s MAD MONEY tonight was Quest Diagnostics (DGX-NYSE). He owns it in his trust, for disclosure. He said that Quest losing Oxford’s business (Unitedhealth-UNH) took the stock down under $49.00 from over $53.00. The company had already partially announced the news a month earlier if you looked at it (re-news). He isn’t minimizing the business loss, or so he says, because it was $400 million of their $6 Billion in total business. The company beat last week by $0.05 on EPS, but lowered guidance. He said it traded up $1.00 because the street is assuming it is conservative. He thinks it could earn $3.10 and they are low-balling estimates at $2.95. It closed at $52.25 and is now up at $52.90 in after-hours. J.P.Morgan just raised it and a broker luncheon on it last week was over-attended.
Jon C. Ogg
January 29, 2007