4 anti-gold biotech plays

The sector's revaluation is on, and these names in particular have made some stunning moves.

By Jim Cramer Apr 17, 2013 9:03AM

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Droplet Falling from Pipette into Test Tube Andrew Douglas Radius Images Getty ImagesThey came right back Tuesday. It was as if they didn't skip a beat, aided by the fine results of Johnson & Johnson (JNJ) and Coca-Cola (KO).


It was as if they had a Food and Drug Administration buy program. Of course, the yield hunters went right after stocks like Eli Lilly (LLY) and GlaxoSmithKline (GSK) and the now perennial 52-week-high AstraZeneca (AZN), the latter totally undeserving of the honor given the poor performance of its actual business as opposed to its stock.


But what I find so astounding isn't the strength in the classic, somewhat high-yielding soft goods stocks but the amazing resilience of the stocksthatgoupeveryday. I am making that one word, because it is the new title I am using for Gilead Sciences (GILD), Biogen Idec (BIIB), Celgene (CELG) and, perhaps most stunningly, Regeneron Pharmaceuticals (REGN).


Now each of these companies has some terrific drugs in the works. There are novel formulations and terrific pipelines. That's terrific, but I have to tell you that this everyday revaluation -- one I warned you about when I suggested you buy calls on these stocks -- is pretty stunning.


Regeneron in particular, is most amazing. It has a terrific ophthalmological pipeline as well as the blockbuster Eylea, and it has a potential for a brand-new anti-cholesterol franchise that isn't based on statins, for those who can't tolerate them.

Everyone wants yield because of the scarcity of bonds that give you anywhere near even the reduced yields that Procter & Gamble (PG) and Clorox (CLX) give you.


But what the growth mutual funds want is growth that can't be pinned down and isn't even crimped by European formulations, which had been the worry for, say, Celgene not that long ago. And these four horsemen have it.


Perhaps the best way to think about this is to recognize that these stocks are the anti-gold. Anything that could drive up gold is bad for biotech. Anything that can drive it down is good. So next time you see gold swoon and take down the whole market, we now know the total handbook for the moment: Buy more deep-in-the-money calls on Biogen Idec, Gilead Sciences, Celgene and Regeneron.


These four stocks remain THE go-to stocks on any geopolitical/terror weakness in this market.

cramer 

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long JNJ.

 

 

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114Comments
Apr 17, 2013 11:03AM
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Apple getting close to being in the 3's.  Just a few months ago every "expert" was saying $700 no problem.  Experts hehehehe.  How many years does it take to become savvy enough to not listen? Market experts are like weather forecasters. They are wrong sooo often but still you see the same faces on the nightly news.   CNBC parades them out in their $2000 suits and all the special makeup.  They look so smart and successful. America is a very funny place these days.  JMHO
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Can you say Asset Bubble Cramer??

Quote -- WASHINGTON (AP) - The International Monetary Fund is urging the Federal Reserve and other central banks to closely monitor their extraordinary efforts to jump-start economic growth, warning that the policies could inflate asset bubbles and destabilize financial markets.

 that the policies could have "adverse side effects," including excessive corporate debt, a stock market bubble and risky investments by pension funds. -- End Quote

Pretty much the only reason the stock market is at or near record highs is the record amount of money the Federal Reserve has been pumping into it.

 

Like Gaul there are three major factors that will crush the stock market much sooner rather than later.

 

The first being the weeding out of workers in the US who make enough money to even have a 401K plan let alone contribute to it. More than half of American workers are now stuck in dead end minimum wage jobs and the percentage is growing each day. Which is why you have 50,000,000 Americans on food stamps. We should have 50,000,000 new jobs in this country paying at least $120,000 a year but what do we have instead from Obama 50,000,000 new food stamp people.

 

The second is the massive number of people retiring each year 10,000,000 a year and who are taking out $30,000 to $75,000 a year from their 401K plans or pension plans to live on. Those 401K plans and pension plans are having to sell stocks and bonds to come up with the cash to pay out to these retired people. In some cases like retired Fire Fighters and public workers in California they are getting $200,000 a year from their pension plans. All this taking out of money from the stock market and the reduction of new workers not putting in money has caused a permanent out flow of money from the stock market.

 

The third is Bernanke throwing tens of billions of fake money in the stock markets to try to keep asset valuations high enough that pension plans are not declared broke and disbanded. Coupled with the fact that no one is buying the trillions of dollars in new US T-bills each year and Bernanke is having to generate about $3 to 5 trillion dollars of money thru the printing of monies a year to keep the ponzi scheme going. This is not to mention the mess that S.S. and medicare are causing along with Obama care.

 

All of this points to a quick and complete collapse of the US economic system. It's not a matter of years anymore folks it's a matter of months before the collapse.

 

Get ready for hyperinflation when the rest of the world abandons the dollar and we have to come up with real money to buy 50 percent of our food and almost all of our manufactured goods from overseas.

Apr 17, 2013 10:58AM
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How's that gold at 1900 working out for you cramer  --- 
Apr 17, 2013 10:53AM
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"stocksthatgoupeveryday. I am making that one word, because"............

 

Because you are a clown Bobo and that is what clowns do ... make up funny words like supercalfragalisticexpealadocis.

 

 

Apr 17, 2013 11:39AM
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World Bank warning about stimulus bubbles..............

 

hahahahahahahahahahahahahahahahahahhahahahahahhaha

hahahahahahahahahahahahahahahahahahahahahahahahaha

hahahahahahahahahahahahahahahahahahahahahahahahaha

 

Busting my sides............... Like the doctor that asked you to cough telling you the Urologist is gonna stick their hand up your azz.

Apr 17, 2013 12:00PM
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It seems the new way to make a million in the finance industry these days is to lead 1,000,000 sheep to your idea and fleece $1 worth of wool off each sheep.  The amount is too small for any one sheep to notice, so nobody calls you to the carpet, yet when you are through, you have your $1,000,000.


This may sound like a crazy analogy but I don't think I'm too far off the mark either.

Apr 17, 2013 11:15AM
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A few minutes before 1100 hrs they called to accelerate the selling, the talk again down here is 200+ down again, why? Because they can; manipulators in total control...Best place to be today is the sidelines, too many of these cheating crooks, we don't stand a chance, at least not now...We will see how it develops...More later.
Apr 17, 2013 1:19PM
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V L: When was the last time gold was at $500/oz ? In the 80's ? For it to fall that far, all economies around the world would have their GDP through the roof. And that just doesn't happen.

 

And how much gold does NASA use in their space programs. With the Mars rocket ahead of schedule, this program alone will consume much gold for components in the various space vehicles & modular living quarters currently in development. And that goes for the military drone projects as well. When you build electrical devices, gold is the absolute best conductor for the money- and that's at room temp. Just think how much more the conductivity increases when these materials are frozen to -200c or below ?

Apr 17, 2013 1:53PM
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Not sure I'd be buying any biotech stocks to hold long term, not until Obamacare is fully implemented and the ramifications fully disclosed.
Apr 17, 2013 9:32AM
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One day up doesn't make a market nor does one day down. Most Pros feel we are at the end of a great Bull Run, not the beginning. Most Pros also refuse to admit that. What else would you expect from folks that only know how to function during Bull Markets. Anything else and they are the worst investors in the world.
Apr 17, 2013 12:25PM
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So 'everyone' hates gold now ? That's like saying you hate hamburgers when their done! What do you do with that burger once it's done ? You consume it ! And after their gone, won't you go back to the store and get more in the future ? Soo.....what do you do when gold is done climbing ? You- you know- consume (sell) it.

 

It's been fluctuating around the high 1300's but all it will take to 'get a rise out of it' is more volatility in the markets. And when does the volatility usually start here in the USA ? SUMMER TIME ! And just think (I know its hard for some of you) what the volatile nature of the markets will be when Obama care ramps up in October ?

 

If your just a buy & hold guy; It's just better to buy your gold from the jewelry store & wear it.

 

 

 

Apr 17, 2013 11:46AM
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Cramer likes to make us believe that he recommended Gilead back when......On his show back around Sept of 2012 he stated that he would buy Gilead "but not at the current price" and wait for a correction.  If you look at the stock it never corrected but kept going up.  He likes to say he recommends stocks and see how they grew. Revisionist history ala Cramer.
Apr 17, 2013 11:30AM
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Cramer, there is no such thing as anti-gold, just more or less of it. Gold does not produce a product, employ people, or pay a dividend.  Gold just sits there more or less.
Apr 17, 2013 10:07AM
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Obviously... we need to BLOCK all stock repurchases and dividends... banks are not solvent and do not benefit America. Think about it... the entire mortgage portfolio is bogus. At prevailing lending rates the home loans will become impossible to service- not enough yield- in 2-3 years of booking. That has ramifications lasting more than 25 YEARS ahead. Credit cards are fully bogus. They issued cards to prior charge-offs, settlements, short sellers and literally don't know who has what and not. There isn't any savings cultures, just check cashing. The prerequisite for lending to small businesses includes a current and two prior year cash flow analysis. The EBITDA today does not cash flow. The moment Ben Bernake stops funding this terrorism, banks fold in insolvency. They created THREE types of currency over the past two decades... fiat money, derivatives and debt contracts. Actual real Dollars have been lost in bad investments like Europe, Asia, Globalization and business platforms tha tfunction adverse to genuine economy. Our BEST BET remains-- close the banks and reconcile. End the Federal Reserve and condemn to GITMO. Get RID of Wall Street. A constant you can count on... Financier isn't a career. The only times in history where it has become one precedes the worst society disasters. 
Apr 17, 2013 9:39AM
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Starting to get your wish...? Delmar.
Apr 17, 2013 12:02PM
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"Cramer, there is no such thing as anti-gold, just more or less of it. Gold does not produce a product, employ people, or pay a dividend. Gold just sits there more or less."

 

You are wrong. Gold- certificates stand in for the metal. They have actual value that can and will be toxic in a price run. Too much automation makes falseness as viable as actual metals in transacting. While you lug your rock around, super-computers can alter pricing in a nano-second. The relative term would actually be- anti-gold. I will offer this again... no one left bread crumbs so we can retrace steps back to solvency. It's a blind trudge up steep and slippery slopes lined with psychopaths. Expect BAD and you won't be shocked.

Apr 17, 2013 2:46PM
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Royal, the only thing I want to ponder right now is a burger, cup of coffee and a nap..

My helper had to leave early..

 

I think Fatty Cakes wants to give him a job, raking leaves or cleaning out drains..?

Fatty only gets callouses on his hands...ONE WAY.

And ain't from counting money or driving a Bentley. ***edited for*** Oink Oink..snuffel,snuffel.

Apr 17, 2013 1:08PM
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Cramer is ok, he knows about as much investing as me.  That is not a compliment. MSN, please find someone else for his job, or cancel the job.
Apr 17, 2013 12:37PM
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Nothing has changed down here, do not fall for those small sucker's rallies, that's what they want you to do, believe we are turning things around and then they stick it to everyone....A bit after 1200 hrs they call for another selloff so down we go again...Its a total aberration but, they know they can and will get away with it...The name of the game these last 3 and a half hours is survival.
Apr 17, 2013 2:27PM
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Ice Cold....I scraped together enough to get about 80 more shares of COP...@ 56.60.

Would have bought more, but can't drain all the accounts.

Sorry, I couldn't buy more for your accounts...

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