Chemed (CHE) is a stock that Cramer actually likes among the rubble. CHE is divided into two segments that aren’t related: one is Roto-Rooter drain cleaner and one is Vitas that runs hospices. Neither operation is related but they both make lots of money. It has exited the Medicare related hospices to avoid caps, and its earnings power is there. They beat earnings expectations and they raised guidance. Cramer said the company didn’t even envision being this popular. It jumped $7.00 on the news and the market sell-off took off about $2.00. He thinks this one can run and he thinks it will get its momentum back.
On a call-in Cramer did say that Service Corp (SCI) in the funeral area is a winner and it is close to a yearly high. Cramer Also thinks that UnitedHealth (UNH) is one that he feels better about than he has ever felt on it.
Jon C. Ogg
March 8, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.