• Tue news: Regeneron fails to block Eylea biosimilar. Inside the GLP-1 price war. Novartis inks $1B biobucks deal. UCB/Biogen lupus drug. Lilly Alzheimer’s drug approved in Japan. See more on our front page

Cramer on Mad Money now


<



Jim Cramer's 'Mad Money' Recap: Opportunities Are Still Out There

BY Scott Rutt | 04/22/14 - 07:50 PM EDT

NEW YORK (TheStreet) -- Leadership is a wonderful thing, Jim Cramer said on Mad Money Tuesday. Cramer said investors may have already missed the bottom but there are still plenty of opportunities left to come.

There have been many sectors that have not been participating in the market's rally, Cramer continued, including the high-growth tech names, retail, the airlines and most of all, biotech. All of these sectors have been left for dead, he noted -- until today.

Netflix (NFLX_) spurred the high-growth tech names today as that high-multiple stock with no earnings proved that its model works internationally, sending shares up 7% on the day, and taking others like Yelp (YELP_) and Zillow (Z_) along for the ride.

A takeover bid for Allergan (AGN_) was enough to spark the biotech and health care sectors into action, Cramer noted. Many of these high-fliers now seem undervalued.

The retail sector also turned positive today on an upgrade of Home Depot (HD_), which sent those shares up a quick 2%. The airlines also ended in the green, thanks to continued weakness in crude oil.

Cramer said the markets are still full of skeptics and critics who will panic at the drop of a hat. But when the markets take their next pause, that will certainly be the time to buy into these new market leaders.

Allergan vs. Valeant

"I'm a big fan of mergers and acquisitions," Cramer told viewers -- but not the recently announced planned hostile takeover of Allergan by Valeant Pharmaceuticals (VRX_) for $45 billion.

Cramer said he's long been a fan of Allergan and CEO David Pyott. The company has a brilliant strategy and is becoming a powerhouse in everything from eye care and obesity to migraines and incontinence treatments.

When the analysts feared generic competition to Allergan's eye care treatments last year, Pyott told Mad Money viewers not to worry. Turns out the analysts were dead wrong, which is why Allergan shares more than doubled since then and were up 28% so far this year, before today's announcement.

So why not support the Valeant takeover? Cramer said Valeant needs to make acquisitions in order to keep growing, and if this deal goes through Allergan will likely end up like many of Valeant's other takeovers -- a shell of its former self.

http://www.thestreet.com/story/1267...-recap-opportunities-are-still-out-there.html
 




Hostile Allergan bid: Cramer hopes Ackman whiffs

"I don't want them to get Allergan," said Jim Cramer. Plain and simple.

Speaking about the recently announced hostile takeover attempt leveraged by pharma giant Valeant in conjunction with billionaire investor Bill Ackman, Cramer said this is a rare case where he's hoping a merger doesn't work out.

"Don't get me wrong. I'm very much in favor of mergers. They make shareholders a lot of money," Cramer said.

This deal would be no exception to that rule.

Under the terms of the bid, Valeant would pay $48.30 a share in cash and 0.83 of one of its shares for each Allergan share. At Monday's closing price, the offer is worth about $152.89 a share, 31 percent above what they called Allergan's unaffected stock price of $116.63.

But when the dust settles, Cramer fears that Ackman and Valeant will dismantle Allergan, and should that happen, he thinks many more people lose than win.

"David Pyott, the mild-mannered but brilliant Allergan CEO, and his team have put together a pharmaceutical powerhouse, even though it is frequently just labeled the Botox company, as if it is some sort of cosmetic concern," Cramer said.

"In truth, Allegan has built amazing franchises in eyecare, migraine headaches, incontinence and even sweat glands. It has developed these incredible drugs by spending a huge amount of its revenues, up to 16%, on research, far more than all of the old line pharmas and much more like a biotech."

Cramer believes if the deal goes through, the structure in place that's generated such significant advances will be dismantled.

"It would make good business sense," Cramer said. "And with an Ackman-Valeant team, I have to believe that's precisely what happens.

"I can immediately see them firing large portions of the salesforce. And, I can see Valeant slashing the R&D budget."

Although Cramer says it makes good business sense, he said it would also be a shame.

Taking that scenario a step further, it's even possible that advances which might have happened under an independent Allergan, may not happen because of the merger.

That would be the ultimate shame.

"Now, ordinarily, I love mergers and acquisitions. Takeovers are a very positive sign, and I constantly wish we had more of them. "But, I hope this company isn't dismantled. I hope Valeant doesn't get Allergan," Cramer said.

---------------------------------------------------------------------

In the interest of full disclosure, it should be noted in a New York Times article both Valeant and Bill Ackman said the acquisition would generate significant new opportunities.

"This proposal represents an undeniable opportunity to create extraordinary value for both Allergan and Valeant shareholders by establishing an unrivaled platform with leading positions in ophthalmology, dermatology, aesthetics, dental and the emerging markets," J. Michael Pearson, Valeant's chairman and chief executive, said in a statement.

Mr. Ackman added: "The combination of Valeant and Allergan represents the most strategic and value-creating transaction I have ever analyzed. I strongly urge the Allergan board of directors to carefully examine the proposed transaction and enter into negotiations with Valeant so that a merger can be consummated promptly."
 








Cramer and Pyott have historically been connected in some weird way. Cramer is Pyott's cheerleader. If Cramer discourages it or looks upon it negatively, I have to believe board/Pyott will reject the offer.
 








There are entire websites dedicated to cramer's terrible track record as an investor. I anything this helps valeant's case especially since he outright says this would deliver tremendous value. Also doesn't help his credibility when he calls Pyott "mild-mannered". Arrogant would have been the appropriate term.
 




Cramer and Pyott have historically been connected in some weird way. Cramer is Pyott's cheerleader. If Cramer discourages it or looks upon it negatively, I have to believe board/Pyott will reject the offer.

I suppose you people have not read the information about this aquisition. For the last year & a half valeant has been talking to pyott & team about merging the two companies. They could not come to terms so valeant and ackerman are going to the shareholders with an offer.
Hostile take over.
 




Cramer and Pyott have historically been connected in some weird way. Cramer is Pyott's cheerleader. If Cramer discourages it or looks upon it negatively, I have to believe board/Pyott will reject the offer.

You are dead on right. Read the news about allergan fighting back with a poison pill in today's news. I'm a big fan of Pyott, I believe he doesn't want this and will fight to preserve allergan. he has too much pride and is already rich beyond what he needs.
 




You are dead on right. Read the news about allergan fighting back with a poison pill in today's news. I'm a big fan of Pyott, I believe he doesn't want this and will fight to preserve allergan. he has too much pride and is already rich beyond what he needs.

Rich? In february he cashed in over $31 million of Allergan stock options. Understand what's going on?
 




Cramer and Pyott have historically been connected in some weird way. Cramer is Pyott's cheerleader. If Cramer discourages it or looks upon it negatively, I have to believe board/Pyott will reject the offer.

In a hostile takeover, Pyott has no voice. If the shareholders want it, its a done deal. Hopefully someone has some integrity here and decides against this. This is a bad move for all of biotech and pharma. Valeant sucks and have the bigger is better mentality while not caring for those who are greatly affected. Many people's lives will be greatly affected by this move...more on the negative side. From the employees to the patients, if this goes through, it is a sad day for sure.
 




In a hostile takeover, Pyott has no voice. If the shareholders want it, its a done deal. Hopefully someone has some integrity here and decides against this. This is a bad move for all of biotech and pharma. Valeant sucks and have the bigger is better mentality while not caring for those who are greatly affected. Many people's lives will be greatly affected by this move...more on the negative side. From the employees to the patients, if this goes through, it is a sad day for sure.[/QUOTE

Are you guys really that STUPID? It's all about money. Many peoples lives will be affected. Valeant buys blotted companies and guts them. Look at their history. Oh yea, see you in NJ on February 1st 2015!
 




In a hostile takeover, Pyott has no voice. If the shareholders want it, its a done deal. Hopefully someone has some integrity here and decides against this. This is a bad move for all of biotech and pharma. Valeant sucks and have the bigger is better mentality while not caring for those who are greatly affected. Many people's lives will be greatly affected by this move...more on the negative side. From the employees to the patients, if this goes through, it is a sad day for sure.


Contact the GOP they are always looking out for the under 250k crowd sure
 




Allergan is worth what it is worth because of its salespeople. If Valeant were to cut sales people.... What would happen to the sales? Plummet. We at Allergan have had such little impact from this economy. Every major Pharma company has carelessly hired thousands of reps and has laid them off.

If this becomes a takeover....and they clean house in sales.....the customers will feel no loyalty.

Let the games begin
 




Allergan is worth what it is worth because of its salespeople. If Valeant were to cut sales people.... What would happen to the sales? Plummet. We at Allergan have had such little impact from this economy. Every major Pharma company has carelessly hired thousands of reps and has laid them off.

If this becomes a takeover....and they clean house in sales.....the customers will feel no loyalty.

Let the games begin

Valeant=customer loyalty you are kidding right.
 








Let me clarify, if Valeant takes over Allergan and they try to cut sales, they are shooting themselves in the foot. That would be a bad move.


They need our sales force

I feel like the Valeant salesforce should be equally worried. Valeant has stated that if the acquisition occurred, they would dissolve Dysport in favor of Botox. I cant imagine that would be good for the sales force already there.
 




Let me clarify, if Valeant takes over Allergan and they try to cut sales, they are shooting themselves in the foot. That would be a bad move.


They need our sales force

I feel like the Valeant salesforce should be equally worried. Valeant has stated that if the acquisition occurred, they would dissolve Dysport in favor of Botox. I cant imagine that would be good for the sales force already there.
 




Allergan is worth what it is worth because of its salespeople. If Valeant were to cut sales people.... What would happen to the sales? Plummet. We at Allergan have had such little impact from this economy. Every major Pharma company has carelessly hired thousands of reps and has laid them off.

If this becomes a takeover....and they clean house in sales.....the customers will feel no loyalty.

Let the games begin


True it's a #'s game they will reduce the sales force by at least 20%
 




Allergan is worth what it is worth because of its salespeople. If Valeant were to cut sales people.... What would happen to the sales? Plummet. We at Allergan have had such little impact from this economy. Every major Pharma company has carelessly hired thousands of reps and has laid them off.

If this becomes a takeover....and they clean house in sales.....the customers will feel no loyalty.

Let the games begin

Valeant wont get rid of sales people. They understand the need. At least for now.