Mad Money 13 September 2005

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Jim Cramer’s Mad Money Recap 9/13/2005

Jim Cramer suggested a play on Celgene Corporation (NASDAQ NM:CELG).

Celgene Corporation is working relentlessly to provide solutions for medical needs in cancer, and for debilitating inflammatory diseases. There are more than 200 ongoing clinical trials at major medical centers worldwide using innovative compounds from Celgene

CELG is not a one product company and it is on the verge of getting FDA approval for its new anticancer drug Revlimid. Test result show Revlimid to be much more effective than Thalomid.

CELG was trading at $ 52.91 as of the market close of 9/12/2005

If you want best of breed pharma check out:

Amgen Inc (NASDAQ NM:AMGN)

Genentech Inc (NYSE:DNA)

Cramer also gave a nice bit of information on the historical performance of drugs before they get an FDA approval.

Six months before and they appear to be getting approved a surge of 12.5% is the average

After FDA approval they are poised for another 4.3% bounce

Cramer also made the case for a short term lumber play. Because of Katrina the demand for lumber will have send these higher.

Plum Creek Timber Co Inc (NYSE:PCL) Prev. Close: $37.30

Georgia-Pacific Corporation (NYSE:GP) Prev. Close: $32.72

Weyerhaeuser Company (NYSE:WY) Prev. Close: $66.73 – Cramer liked this one the best because they have been beating analyst estimates. Cramer put a C’mon back on this one.