On tonight’s MAD MONEY show on CNBC, Cramer also reviewed using your own risks and emotions to make money after his BSX recommendation. This all depends on if you are ok with low returns, high returns, or anything in between. So on the second feature Cramer reviewed the more conservative company in the stent trade as JNJ.
He said on the safer side of the trade, J&J (JNJ) shouldn’t get hit too hard if the FDA unexpectedly comes out against them; but it will go up a little if the FDA backs stents. Cramer said JNJ is a buy either way, and you’ll get to buy more if the stock drops too much if the FDA unexpectedly goes against stent makers.
Jon C. Ogg
December 5, 2006
Since this was a Part II, below is what he just said on BSX before he commented on JNJ:
On tonight’s MAD MONEY show on CNBC, Cramer reviewed what the state of the stent market will be.
There is a meeting Thursday at the FDA where the FDA is going to make a recommendation or decision on stents and the approval of them. Cramer thinks that stents will stay and the FDA may either ask for more data or just make token comments.
Both Boston Scientific (BSX) & J&J (JNJ) have been down on the possibility that an FDA decision "could" go against them. Cramer said that BSX is the riskier of the two because it has more business leveraged, and JNJ has diversified mush of its operations. Cramer prefers BSX for a trade, but warned again that this has risks. BSX traded up almost 4% today to $16.56, but traded up another 0.9% to $16.70 after Cramer discussed this.
By the way, Cramer left off two important companies here. SurModics (SRDX) provides the stent polymer coating for J&J and Angiotech (ANPI) makes the stent polymer coating for Boston Scientific. Those would both be very leveraged, with more downside if FDA pans the stent markets.
Jon C. Ogg
December 5, 2006
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