Cramer’s Opening Comments:

Tomorrow’s play is in biotech:
We are moments away from the biggest meeting of the year (ASCO – American Society of Clinical Oncologists) and to me the smart money is saying to bet with Onyx Pharmaceuticals (ONXX). Year after year after year the biotech stocks run up in anticipation of some great news coming out and the conference then they get hammered on Monday. Here’s what to do in anticipation: See people coming in and buying DNDN and CEGE ring the register on those tomorrow morning – BEAR. Smart money is getting into ONXX, which has a kidney cancer drug. PFE and ONXX have drugs that have shown some slowdown and stoppage in the growth of Renal cell cancer. I don’t want to get your hopes up but what I’m hearing is everything that I like about what we’re gonna hear Saturday morning for both PFE and ONXX. With Dendreon there is no upside surprise because we already know what is the data is. Same thing with CEGE. With ONXX and PFE both drugs could be in play because this disease is so horrible and there are no drugs available. ONXX is not for the squeamish – it’s a one drug company and its on its butt versus the others. If it goes up a bit on Monday, ring the register a bit but don’t sell it all because maybe the big payoff is down the road. It’s at 31.85 please don’t go nuts tomorrow morning and pay 34 for it, use some limits.

We, of my generation, think of PFE and MRK as great growth stocks. I think that the new generation of investors think of these like Alcoa (AA) and Dow Chemical (DOW). The next generation is Genentech (DNA) and Amgen (AMGN), to a lesser extent Genzyme (GENZ) and Biogen Idec (BIIB). For the newer guns, the guys really trying to make a difference, they are looking at the ONXX’s because that’s the next generation DNA. I believe in BUY AND HOMEWORK, not buy and hold. People who can’t do the homework and can’t trade to own a basket or a Fidelity biotech fund.

MEDICAL DEVICE SECTOR:
When Guidant is finished being purchased by Johnson and Johnson (JNJ) you have a 50/50 play there. That’s going to be the medical device and pharma drug of choice. Secondarily I like Zimmer (ZMH). Even better are free standing surgical companies like Universal Health but they’ve moved up a lot. If you want medical devices the name is Johnson and Johnson.

Emotions and stocks:
These stocks are pieces of paper – to be emotionally attached, save that for your husband. My take is that DreamWorks (DWA) at 31, is actually a better buy than Disney (DIS). DWA on May 27th I think you get right back to where it was before this sell off.

What about tech here?
What you do is try to figure out what you’d be willing to buy if it came down 10%. If you can’t stomach that decline I need you to make a move and ring the register.

I’m beginning to reach a new level of revulsion about the brokerage industry. These two pieces of “business” (LAZ and WMG) are brutal. This stench is exactly the wrong message for Goldman (GS) and Wall Street right now. Nobody needs to make money that badly.

How did you know that these IPO’s were a turkey?
A: I spend all day talking to hundred’s of guys talking about this stuff.

Cramer talks with Jeff Smulyan, Emmis Communication (EMMS) CEO:
Smulyan is one of the smartest men in the business, can go toe to toe with Mel Karmazin. This is a man who is a terrific investor. I’d wait until after the dutch tender offer is finished and then I think the stock’s gonna go back down. If you still believe that would be the moment to buy, not now.

Cramer talks with Arena Pharmaceuticals (ARNA) CEO Jack Lief:
Says obesity drug proves effective in small study
Patients on Obesity Drug lost 3 lbs., those on placebo lost .7 lbs.
Around the end of next month they’ll be announcing the results of their insomnia study. Also have partnering opportunities with MRK and JNJ.
Cramer’s take (ARNA): I like to buy things yesterday, my rules say this stock has made the move – put this on the shopping list, right now the good money has been made in that stock.

Disclaimer: I AM NOT JIM CRAMER. I sometimes write the summary in first person because my brain doesn't quite move fast enough to process and type at the same time, so please excuse that. This blog has no affiliation with Jim Cramer, CNBC, or Mad Money. This is done for me and you to be able to better follow and track Cramer’s comments, the show goes by quickly so I try and catch as many key words as possible for each pick. ACCURACY IS NOT GUARANTEED but is however strived for.

CEGE - Cell Genesys, Inc. - Sell this Thursday morning - ring the register
DNDN - Dendreon Corporation - Sell this Thursday morning - ring the register
ONXX - Onyx Pharmaceuticals, Inc. - See comments at beginning of show - paragraph form
DWA - DreamWorks Animation SKG, Inc. - Madagascar better be huge, it better be the biggest animated movie of all time, because otherwise DWA is going much much lower. No way that DWA deserves a premium multiple after its missed forecast. Insider's leaked the news of a shortfall to Newsweek.com. How can DWA not know about DVD sales shortfall? Would have issued a SELL SELL SELL if not for Madagascar. Then you go back to the conference call and you see what Katzenberg says about Madagascar. He says two words, "It's great" then goes on and gets people juiced about Madagascar. He's as close to money in the bank as it gets. BULL - I'd be buying DWA because of Madagascar, right here right now if I were at my hedge fund. Think that by May 27th it gets right back to where it was before this sell off. Think that DWA here is a better buy than DIS because its got a catalyst.

Lightning Round:

ILSE - Intralase Corp. - Laser stocks are not for me - BEAR - sell
ACN - Accenture Ltd - You can get an Indian consulting company for $40,000 / year vs. the million dollars they pay per year in Accenture - I think this is a perma short!!! - SELL SELL SELL
JCI - Johnson Controls, Inc. - BEAR - not going against Herb Greenberg, do believe it’s a better company than most but its not for me
STEM - StemCells, Inc. - BEAR - way too speculative for this show
AEOS - American Eagle Outfitters - Bank of America downgraded it yesterday and he happened to be the best on this stock so I'm gonna go neutral on AEOS
HNZ - H.J. Heinz Company - BULL - I think that you want to own food stocks here although its not a well run company
GMR - General Maritime Corp. - Getting a little neutral on these tanking stocks - BEAR
IOC - InterOil Corporation (USA) - Sun of a gun keeps going down, New Guinea property is worth so much money that I don't understand it. Buddies tell me its worth 50 bucks, I don't know I'm getting skeptical.
LCAV - LCA-Vision Inc. - Don't care where the lasers work, I don't like em - BEAR
NFB - North Fork Bancorporation, Inc. - BEAR, SELL - swap out and into CBH, which I own personally
WLP - WellPoint, Inc. - UNH is better but I like WLP too BULL
CHS - Chico's FAS, Inc. - Slowing in CHS comp stores - just too high risk at this point in the cycle - also sold my URBN.
ALD - Allied Capital Corp - These are too hard for me at this stage in the cycle - worried about them with Fed raising rates - ring the register
CB - Chubb Corporation - BULL - I like Chubb - just cause they got the gosh darn subpoena doesn't mean it’s the end of the world
WRI - Weingarten Realty Investors - My favorite REIT is NLY, spoke with their CEO today and he is for me
INFY - Infosys Technologies Limited (ADR) - Crazy about India, BUY - sell the accenture to get this
MEE - Massey Energy Company - BULL - I was too negative about this company, I'm going out positive on them now
IVGN - Invitrogen Corporation - This is a biotech tool company and I like it - BULL
MKC - McCormick & Company, Inc. - They overpaid for vanilla at the first part of the year and they are so underwater on vanilla but I can't believe that they'll overpay again so I recommend the stock - BULL
MDRX - Allscripts Healthcare Solutions, Inc. - BULL - Buddy from Stocks Under $10 likes it and I'll go with him
CNQ - Canadian Natural Resource (USA) - I like Canada, natural and resources but I still recommend ECA because its cheaper and better - owns ECA
ECA - EnCana Corporation (USA) - get in it over CNQ
VZ - Verizon Communications - Sell that stock
NXTP - Nextel Partners, Inc. - Ring the register - take the money and run, lot of negatives in phone company business
SAY - Satyam Computer (ADR) - Like these and INFY - BULL
BE - BearingPoint, Inc. - Sell
ICGE - Internet Capital Group, Inc. - Sell it
TPTH - TriPath Imaging, Inc. - BULL
HD - Home Depot, Inc. - Why HD when you can get into Lowe's (LOW) worried about quarters because of late spring and weather though, wait till it gets lower
IMH - IMPAC Mortgage Holdings, Inc - So liking NLY, much more faith in its dividend
NT - Nortel Networks Corporation (USA) - SELL SELL SELL - Triple Sell
TCF - TurboChef Technologies - Bull - pretty good company
AAPL - Apple Computer, Inc. - No - Yahoo's getting it from the music side, Sony on the other side - its getting too hard, did like it for a long time then iPods got to be in long supply instead of short supply
NLY - Annaly Mortgage Management - Favorite REIT
ELBO - Electronics Boutique Holdings Corp. - That stock's for me. When ELBO and GME merge its gonna be the growth stock for next yr I like it
NITE - Knight Trading Group, Inc. - ET, AMTD, SCH, NITE - order of rating in the brokerage group. Wouldn't sell NITE here cause its too cheap
MSFT - Microsoft Corporation - BEAR - rather see you in INTC, growing faster with a lower multiple
PDLI - Protein Design Labs, Inc. - Ring the register after the big spike, not for me up at this level
ADSX - Applied Digital Solutions, Inc. - Not for me, $3 stock - those are too hard
ZMH - Zimmer Holdings, Inc. - BULL - buy that stock, management is terrific - knees and hip business - knee business is en fuego, hip business is a little weak right now

WMG - WARNER MUSIC GRP CORP - Told you that deal would be a stinker, just as ugly as LAZ
CRI - Carter's Inc. - Those long suffering GOSHA shareholders got their head handed to them today because CRI bought the company for less than what it was selling for. This is the type of thing that makes people really furious about Wall Street. For the companies board to sell the stock for less than where it was yesterday is an outrage. If I owned CRI I'd sell that thing nine ways to Sunday - RING THE REGISTER - If I were you I'd exit both stocks
GOSHA - OshKosh B'Gosh, Inc. - Those long suffering GOSHA shareholders got their head handed to them today because CRI bought the company for less than what it was selling for. This is the type of thing that makes people really furious about Wall Street. For the companies board to sell the stock for less than where it was yesterday is an outrage. If I owned CRI I'd sell that thing nine ways to Sunday - RING THE REGISTER - If I were you I'd exit both stocks
GOOG - Google Inc. - BULL - Jordan Rohan said something
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