Bloomberg News

Jim Cramer: Gilead, Optium, Marvell, Thermo Fisher, Yamana Gold

January 08, 2007

Investors looking to get a jump on a rising biotech company this year should buy shares of Gilead Sciences Inc. (GILD:US), Jim Cramer said on his ``Mad Money'' television program on CNBC.

Gilead, which specializes in medication to treat infectious diseases, acquired cardiovascular disorder drugmaker Myogen Inc. in November and had a 6.5 percent stock price decline after the deal was announced. Cramer said the share price reflects investors' anxiety over how the two companies will integrate, ignoring the fact that both are good.

``Now is the time to buy Gilead while the rest of the street is still scared,'' said Cramer, a market commentator and former hedge-fund manager. ``For some reason, Wall Street thinks these things aren't supposed to mix.''

Another stock recommended was Thermo Fisher Scientific Inc. (TMO:US) The company is making a presentation tomorrow at a biotech conference and will likely see a pickup in its share price after discussing plans for the year, Cramer said. He recommended buying the stock in the morning before the presentation.

``Thermo Fisher is the premier arms supplier to the whole pharmaceutical business,'' Cramer said. ``You can buy a biotech stock and speculate on the success of its drugs or you can buy Thermo Fisher and make a smart bet that there will always be drug companies buying its equipment, particularly when they are so flush with cash.''

`Overlooked' IPO

Cramer named Optium Corp. his no. 1 overlooked initial public offering of 2006 and said investors should buy shares of the maker of optical equipment for the telecommunications and cable television industries. Optium's equipment helps companies broadcast video over fiber optic lines.

``It's actually doing well, but the group it belongs to has been so dysfunctional, so disappointing for so long, that the stock got overlooked and written off,'' he said.

Cramer recommended Community Bank System Inc. (CBU:US), Companhia Vale do Rio Doce, Daktronics Inc. (DAKT:US), Hewlett-Packard Co. (HPQ:US), Marvell Technology Group Ltd. (MRVL:US), USG Corp. (USG:US) and Yamana Gold Inc. (YRI) in response to questions during the show's ``Lightning Round'' segment.

He also told viewers to avoid Amphenol Corp. (APH:US), BHP Billiton ltd. (BHP), Internap Network Services Corp. (INAP:US), Peabody Energy Corp. (BTU:US), Rio Tinto Plc (RIO) and Sun Microsystems, Inc.

Cramer said he owns Hewlett-Packard and Marvell for his charitable trust.

To contact the reporter on this story: Ryan Flinn in San Francisco at rflinn@bloomberg.net

To contact the editor responsible for this story: Jeff Ward at jward@bloomberg.net.


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Companies Mentioned

  • GILD
    (Gilead Sciences Inc)
    • $105.67 USD
    • 0.20
    • 0.19%
  • TMO
    (Thermo Fisher Scientific Inc)
    • $121.24 USD
    • -0.57
    • -0.47%
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