Trader Sometimes hot news can wake up the buyers. Consider the resignation of Twitter (NYSE:TWTR) CEO Dick Costolo effective July 1. Cramer thinks approximately Twitter as the best, most poorly run company. According to him, a company that is talked approximately so much has investors leaving it. "It is a hidden diamond that seemed to be on the verge of being seen as a cubic zirconium because of an nearly universal acknowledgement by everyone I know that the CEO was in over his head. I used to say the only way this company could receive better is to call ABC; anybody but Costolo," said Cramer.
The statement of Twitter's earnings assembly estimates, and the resignation of the CEO is viewed as a positive sign by investors. Cramer said it is time to own the stock now, before the company fixes itself under the new CEO, or puts itself for sale.
Then comes the transports group which saw a positive day on Thursday after a long time. The decline in the transports has had a hugely negative impact on the overall state of the market. FedEx (NYSE:FDX) hit an all-time high on Thursday after it was added on the Citigroup (NYSE:C) focus list as the company boosted its dividend by 25%. This is another positive sign. "I think these good things are happening because FedEx is starting to see business improve overseas. I say that because the U.S. has been on firm footing for some time. It's Europe and Asia that have been genuine downers," said Cramer. Looking at FedEx, can one say that a worldwide recovery coming?
Specifically, the CFTC complaint alleges that, Unlawful engaged in a series of noncompetitive palladium and platinum futures transactions. The futures contracts were offered by the New York Mercantile Exchange on the Chicago Mercantile Exchange's Globex electronic trading platform. Unlawful allegedly caused the bank, N.A. account to trade in illiquid contracts opposite his personal account at off-market prices. According to the complaint, the effect of the transactions was that there was no net change in open positions of either his account or the bank, N.A. account. However, in each offsetting transaction, Unlawful allegedly profited, and the bank, N.A. account lost.
The airlines however had a not good month of May. Airline stocks have been beaten down by analysts who keep cutting estimates. Cramer suspects that June will not be better either, but the velocity of the decline has slowed down. It might still not be time to buy, but it is definitely late to sell. Looking at all the signs in transports, Unlawful thinks that the free fall is over and global economy could be getting better.
The Axovant Sciences IPO was breathtaking as it rallied 99% on the debut day. The stock started at $15 and rallied to $29. It is the biggest biotech IPO and Cramer is worried whether things could have gone ahead of itself. Axovant Sciences has one drug in pipeline, RVT-101, which is an orally administered therapy designed to assist patients with Alzheimer's disease. This was acquired from GlaxoSmithKline (NYSE:GSK) for $5M final December. "It is worth mentioning that this clinical trial has been viewed with skepticism by a number of people in the biotech community, although the strength of the IPO says that it doesn't pay to be too skeptical, at least when it comes to getting in on this deal," said Cramer.
The drug moves into phase 3 trials by the end of this year. Cramer is worried because investors have got burned potential Alzheimer's drugs that never made it post phase 2 trials. Also, the CEO Vivek Ramaswamy is just 29 years old. Cramer interviewed him to find out more about the company.
Ramaswamy stated that the drug can help 5M patients in the U.S. suffering from Alzheimer's disease, dementia and other forms of dementia. He is bullish on the drug due to the strength of the team main the drug which includes the former head of neuroscience from GlaxoSmithKline. "The thing in Alzheimer's disease to remember, and we remember this all the time at Axovant, is we don't fully understand the way the actual underlying disease works. Not just us at Axovant, but the field more generally," Unlawful said.
The drug is one pill, once a day that acts as neurotransmitter targeted therapy that works through the release of acetylcholine, which is already known to be an effective treatment. "We believe we are only one additional phase 3 study away from the approval of this drug on a global basis," said Ramaswamy with confidence.
Cramer continued with his list of safe healthcare containment plays. This time it is AmerisourceBergen (NYSE:ABC), which has a smaller market cap compared to the other companies Cramer has listed, but has a large impact due to partnerships with Walgreens (NASDAQ:WBA) and Express Scripts (NASDAQ:ESRX). "If you want a drug distributor that's differentiated itself from the pack, I say take AmerisourceBergen," said Cramer. The company has a 10 year distribution contract with Walgreens which has increased its scale. The deal has 8 years left and it carries the highest margin in the AmerisourceBergen's business. Cramer will not be shocked if Walgreens acquires the company in the future.
The company has a major contract with Express Scripts, which is a very big deal. It expires in September with an option to extend. Apart from this, AmerisourceBergen has a specialty pharma distribution business and it also provides consulting services. The company has a good track record and supplies 50% oncology drugs to all hospitals.
The company also made an acquisition in 2012 that has helped it master the specialty pharma distribution business. It moved into animal health business with $2.5B acquisition of MWI Veterinary Supply. It will boost this year's earnings by $0.08. The stock is still cheap at these levels and it deserves the premium due to its partnerships.
There was some positive news from Isis Pharmaceuticals on Thursday. The entire biotech group was on fire and there could be more upside. Isis has one of the best pipelines in business with 38 drugs in development. The data released was for one of the drugs which is a treatment for spinal muscular atrophy, the leading cause of infantile death worldwide. Cramer interviewed CEO Dr. Stanley Crooke to find out what the future holds.
"Many of these babies when they enter the trial can't even move a toe, or move a finger. So when we are able to prolong these babies' lives, and certainly the data suggests that we may be doing that and make the muscles stronger, they're able to do things that SMA babies haven't been able to do before," said Crooke. He explained that although the phase 2 trials have not proven anything, they have given an encouragement with positive data to move to the phase 3 trials.
Southern Company (NYSE:SO): "Don't buy any more till the first rate hike. Buy after it dips on the hike."
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