Cramer Plays Defense: Buy Hospira (HSP)
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Price: $89.95 --0%
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 19
Rating Summary:
3 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 19
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On last night's Mad Money, Cramer continued his week long theme on healthcare stocks by recommending shares of Hospira (NYSE: HSP). Given the very turbulent current market conditions, Cramer believes healthcare is the place to be as it is generally viewed as a "recession-proof" sector. Further, Cramer believes smart money will soon begin moving into this sector in an effort to play some defense, and he wants viewers of his CNBC show to get in "ahead of the rotation."
Cramer believes Hospira stock has finally started to "gain some traction" among Wall Street players, as the company has become more focused on oncology, which has boosted growth and caused margins to expand. Cramer points out that Hospira is currently the top maker of specialty injectable pharmaceuticals, controlling about 17% of this market.
The Mad Money host believes the real potential for Hospira lies in its Asian growth: in Japan, generic drug use accounts for only 16% of all drugs used, versus the U.S.'s 50%. This leaves the door open for Hospira to come in and snag as much market share as it can. Cramer also points out that Hospira's acquisition of Mayne Pharmaceuticals has now begun to take effect, which he believes "provides Hospira growth that Wall Street has failed to notice."
Finally, Jim told viewers Hospira's cost cutting efforts also make it attractive. The company has recently closed five facilities, which Cramer believes could add up to $0.09 per share to Hospira's FY10 EPS.
Hospira, Inc., a pharmaceutical and medication delivery company, engages in the development, manufacture, and marketing of specialty injectable pharmaceuticals and medication delivery systems that deliver drugs and intravenous (I.V.) fluids in the United States and internationally.
Cramer believes Hospira stock has finally started to "gain some traction" among Wall Street players, as the company has become more focused on oncology, which has boosted growth and caused margins to expand. Cramer points out that Hospira is currently the top maker of specialty injectable pharmaceuticals, controlling about 17% of this market.
The Mad Money host believes the real potential for Hospira lies in its Asian growth: in Japan, generic drug use accounts for only 16% of all drugs used, versus the U.S.'s 50%. This leaves the door open for Hospira to come in and snag as much market share as it can. Cramer also points out that Hospira's acquisition of Mayne Pharmaceuticals has now begun to take effect, which he believes "provides Hospira growth that Wall Street has failed to notice."
Finally, Jim told viewers Hospira's cost cutting efforts also make it attractive. The company has recently closed five facilities, which Cramer believes could add up to $0.09 per share to Hospira's FY10 EPS.
Hospira, Inc., a pharmaceutical and medication delivery company, engages in the development, manufacture, and marketing of specialty injectable pharmaceuticals and medication delivery systems that deliver drugs and intravenous (I.V.) fluids in the United States and internationally.
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