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Tuesday, September 05, 2006

Mad Money Recap: Cramer Builds a Bionic Man

Cramer wanted to show you how to build a Bionic Man......

Stock tickers Positive: MDT, STJ, NSTR, NXTM, KYPH, SNN, WMGI, ACL, AGN, MRX, MNT, PFE, DJO;

Stock tickers Negative: BSX, CYBX, ABMD, BOL

Jim Cramer came back on MAD MONEY after his week off.

Cramer says to still stay defensive in this environment with secular growth plays, in particular medical and implants. He said this even though cyclical stocks are up right now.

Cramer first discussed "building a bionic man" about all the parts to rebuild people and their defective parts. Not all replacement parts are equal, so he doesn't endorese all of them.

The fake heart bits and pieces winners according to Cramers may be Medtronic (MDT) and St. Jude (STJ), but sell Boston Scientific (BSX) on its Guidant unit.

In brain implant pieces Cramer likes Northstar Neuroscience (NSTR) and says stay away from a broken company Cyberonics (CYBX). NSTR has only just started to grow in this space.

In Kidneys Cramer likes a tiny company called Nxstage medical (NXTM), although he says "don't buy yet." He likes the portable dialysis product they offer.

In Spines Cramer likes Kyphon (KYPH) for minimally invasive spinal surgery.

In other bones likes he likes a non-traditional orthopedics play like Smith & Nephew (SNN) for hip, knee, and shoulder replacements; they also have bone cement and others.

In a call-in question: Cramer said to ring the register on today's Abiomed (ABMD) announcement for an FDA approval on the fake heart because the stock is already way up and he doesn't even think Medicare will reimburse for it.

Wright Medical (WMGI) is the one that cramer said has replacement tendons and ligaments.

As for eyes, Cramer said that Alcon (ACL) makes functional products and equipments for eyes, but he likes them best ofr contact lenses; he noted Bausch & Lomb (BOL) as a Sell.

In skin smoothness and wrinkles: Cramer likes Allergan (AGN) for Botox, he likes Medicis Pharma (MRX) for sub-face wrinkles, and he likes Mentor (MNT) that does skin tissue and expansion but really likes them for liposuction and breast implants.

For hair replacements or for a full head of hair, Cramer likes Pfizer (PFE) for Rogaine; he said PFE is back on its way up to $30 and that may be a weighs tation for $35.

He likes DJO (DJO) for the last thing to help with recovery.

He thinks that even though medical stocks have been going down, he thinks these could outperform the market for 2 to 3 more months.

In a call-in Cramer had a guest ask about the surgery play he said LCA Vision (LCAV) is the play.

Jon C. Ogg
September 5, 2006
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