On CNBC’s MAD MONEY tonight, Cramer showed where his Biosite (BSTE) that he recommended one month ago has been given a buyout and is up 50%. But what he wants to do is look at what to do now. He said the percentage premium for the buyout what well above the norm. Cramer said you can now look at Cepheid (CPHD). The company tests for staph infection. The other player is Becton-Dickinson (BDX) that he likes a lot and it is up 25% since his recommendation there. It is also too big and the veterans administration contract won’t matter to BDX. Cepheid (CPHD) would benefit greatly if they win. Cramer says he has NO IDEA if they will be selected or not, but he thinks this can go up from here even without the deal. CPHD is part of the Anthrax test consortium. Sales last year were $82+ million and its market cap before the pop here was $598 million. Cramer thinks this one could be a cheap acquisition for anyone wanting to get into the testing area.
CPHD just popped 9% after-hours to $11.90. The 52-week trading range is $6.50 to $10.58. This is also close to the 5-year high.
Cramer did note that Gilead (GILD) was his older biotech pick for the year and he thinks it is still a good investment. He was also positive on Array Bio (ARRY) in a call-in, but only as a speculation instead of an investment for the long-haul.
Jon C. Ogg
March 26, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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