Jim Cramer's Mad Money Review

Time Heals all Wounds: Kinetic Concepts (NYSE: KCI - News) and Smith & Nephew (NYSE: SNN - News)
Although Cramer usually prefers medical stocks which are a "pastiche," he likes KCI as a speculative stock even though it is levered only to wound-care and therapeutic service products. He is not concerned about the "nasty beating" KCI has taken, since the bulls and bears tend to fight it out over companies like KCI, and Cramer thinks the bulls will win. Another concern is KCI has reached 90% saturation in wound care and now has to compete for market share with SNN which recently acquired Blue Sky Medical. Cramer believes KCI has many competitive advantages, its 3% drop was "overdone," and only 10% of its revenue comes from bandages. He is confident KCI will bounce back.
On the Mend: Micrus Endovascular (NasdaqGM: MEND), Boston Scientific (NYSE: BSX - News) and Johnson & Johnson (NYSE: JNJ - News)
While those holding the stock may be in the "House of Pain" after MEND failed to get approval in China for its cerebral aneurysm treatment, Cramer thinks its $2 fall is a good opportunity to buy. He believes approval has been postponed and not cancelled, and would sell into strength once the treatment is approved. Cramer is not worried about large competitors BSX and JNJ. He also notes MEND could be a takeover target; "It either makes you money or it will get bought out." Cramer would buy the stock in increments andwould use limit orders.
Game Plan for the Coming Week: Thermo Fisher Scientific (NYSE: TMO - News), J.C. Penney (NYSE: JCP - News), Kohl's (NYSE: KSS - News), Home Depot (NYSE: HD - News), TJX Companies (NYSE: TJX - News), Jack in the Box (NYSE: JBX - News), Deere (NYSE: DE - News)
Cramer would look into buying scientific-instruments producer TMO before its analyst meeting on Tuesday. He also likes retailers JCP, KSS which report Thursday, and he thinks the downside has been priced into the stocks. Cramer is currently bullish on retail, and would buy half a position in HD before its Tuesday report, since he believes its management is developing "retail-savvy." Tuesday is also the day Cramer believes investors will see a "terrific" report from TJX and a "gigantic beat" from JBX, and he would buy ahead. However, Cramer would wait until after DE's report on Wednesday before buying, because the stock has increased, and he would wait for a selloff and a price drop.
CEO Interview: Mark Shapiro, Six Flags (NYSE: SIX - News)
Mark Shapiro is looking forward to an "extremely good summer season" given the number of group sales and season passes SIX has already sold. Meanwhile, the company has been investing in more aggressive marketing, employee training and recruiting. Although the weather is an unknown variable, Shapiro's aim is to "increase value proposition for our guests." Cramer remarks Shapiro is "good to go" and is sticking with Six Flags.
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Labels: BSX, DE, HD, JBX, JCP, Jim Cramer, JNJ, KCI, KSS, Mad Money, SIX, SNN, TJX, TMO

Bullish calls:
Thermo Fisher Scientific (NYSE: TMO - News): ' May I suggest - if you're going to do medical diagnostics ... it's TMO.'Marvell Technology (NASDAQ: MRVL - News): ' ... I think it's got one down and five up. They make the controllers for disk drives, among other things, and also the PS2 ... I think it's six months before it explodes, but it will explode to the upside!'Companhia Vale do Rio (NYSE: RIO - News): 'The only one that I will still sanction, was my last one that I recommended, which was RIO.Hewlett-Packard (NYSE: HPQ - News): 'The only one [personal computer company] that I've actually been recommending - it's got big revenues this company - is the HPQ.'USG (NYSE: USG - News): 'I think USG is maxed out by Warren Buffet. It's at $52 bucks and, if housing turns, it goes right to $65. And, if housing doesn't turn, no real downside - maybe $49. That means 3 down, and it means 7 up. 7 up wins.'Community Bank System (NYSE: CBU - News): 'This one's very cheap off the book value. Why? Because the book value's actually cash, when it comes to banks. I like it. 3.4% yield. I'm not concerned about the inverted yield curve ... You've got a winner.'Daktronics (NASDAQ: DAKT - News): 'They were beat up, and it was a fallacy! ... This was classic profit taking ... I like DAKT very much on this pullback, and I want to pull the trigger, and then I want to stay with it.'
Bearish calls:
Mindray Medical International (NYSE: MR - News): 'Oh, there's a man who likes to go to China and look for nothing but problems. We got a lot of companies who do the same thing - in terms of the internet - right here ... TMO's better than MR.'Internap Network Services (NASDAQ: INAP - News): 'It is time to ring the register INAP.'Intuitive Surgical (NASDAQ: ISRG - News)Amphenol (NYSE: APH - News): 'I never find these companies to be anything that special, but they always trade cheap. I have no catalyst to recommend APH, so I'm going to say, 'don't buy, don't buy.'Rio Tinto (NYSE: RTP - News): 'The commodity boom is over. NEM - the last of the big gold stocks - is rolling over. I do not want be associated with RTP, or BHP anymore. 'BHP Billiton (NYSE: BHP - News)Systemax (NYSE: SYX - News): 'We liked this stock before; it's had a really nice run. I am not going to tell you that it's necessarily cheap ... SYX is kind of one of these [ one sideways thumb].'Peabody Energy (NYSE: BTU - News): ' ... coal is plummeting, plummeting. No one wants to own coal. Plus, we have the Democrats ... they are not of, by and for the corporation. They are concerned with the air. You can't make any money off of that game - the air game. Therefore, I think that BTU remains a cheap stock with no catalyst. Not for me.'
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Labels: APH, BHP, BTU, CBU, DAKT, HPQ, INAP, ISRG, Jim Cramer, Mad Money, MR, MRVL, RIO, RTP, SYX, TMO, USG

Gilead Sciences (NASDAQ: GILD - News), Thermo Fisher Scientific (NYSE: TMO - News)
Cramer would buy GILD before Tuesday's J.P. Morgan Healthcare Conference, which should give the stock a bounce. Cramer thinks that 2007 will be a good year for biotech in general, and he comments that GILD has a great pipleline and "the best portfolio of HIV drugs on the market." However, The Street is not yet comfortable with GILD's Myogen acquisition, and once fears are put to rest at the conference, Cramer predicts that there will be increased interest in the stock. Cramer would also buy TMO before the company makes its presentation at the conference at 11 a.m on Tuesday, and this "coming out party" and its merger with Fisher Scientific should have a beneficial effect on the stock. Cramer calls TMO the "premier arms supplier to the whole pharmaceutical business" and although it is not a pure play, its end markets are strong. He notes that analysts have been "falling over themselves" to raise estimates, and they still don't realize what a "powerhouse" TMO is, since it will be able to cut costs, increase margins and see 32% growth in 2007. "It's the biggest, the best and deserves to trade at a premium to other life sciences companies," Cramer said, noting that it is cheaper than its rivals.
Related: Gilead paid a high premium to acquire Myogen.
Optium (NASDAQ: OPTM - News)
Cramer declared that OPTM was the most overlooked IPO of 2006 because it was unfairly lumped together with other telcos. He would pick up this "overlooked and written off" stock because it has a triple play of internet, TV and radio. In addition, it is the "optical infrastructure play we have been hoping for, " and has tripled its backlog. Since OPTM is speculative, Cramer suggests doing research before buying, and says that those who find the company's technology hard to understand should move on to something else.
Related: Tiernan Ray discusses Optimum's IPO and other optical stocks.
CEO Interview: Peter Marrone, Yamana Gold (AMEX: AUY - News)
Cramer asked Peter Marrone to explain how AUY has such low finding costs and why it is a good option for those who want to invest in gold stocks rather than in gold itself. Marrone explained that Yamana has large mines, and thanks to the size and scope of operations, AUY can produce gold at a low cost. He went on to say that the cash cost of producing AUY's gold is low because of its byproduct credits from copper production, and that its costs for 2007 to 2008 will actually be negative. When Cramer asked about potential acquisitions, Marrone replied that there may be some opportunities in Latin America once AUY's stock price is consistent with its peers. Cramer recommended AUY as a strong gold stock.
Related: The Wall Street transcripts roundtable on gold stocks for 2007.
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Labels: AUY, GILD, Jim Cramer, Mad Money, OPTM, TMO