Game Plan for the Week of June 4
Cramer’s Game Plan for the coming week is all about company meetings and conferences. He’s done his best to figure out what news will be coming out of these events and the best strategies for trading on them.
Onyx Pharmaceuticals should announce its treatment for liver cancer at the American Society of Clinical Oncologists conference, sending the stock higher. This should put every major pipeline-challenged drug company in the market on the hunt for ONXX. Cramer recommends getting in before the June 5 meeting.
PDL Biopharma might earn five points of upside if it dumps its CEO. Third Point Capital is trying to unseat the executive for unethical behavior, which has Cramer thinking the chief is out by the end of the week.
Norfolk Southern has its party on June 6. The rails are hot right now, especially with the attention Warren Buffett has been giving them. But the guys who run this company are cautious by nature, Cramer says. He thinks it’s a worthy trade to buy ahead and sell the stock into the meeting.
Merrill Lynch has an agriculture conference on Tuesday, with a focus on fertilizer and seeds. Cramer likes Sociedad Quimica and Monsanto, respectively, for these two industries.
Johnson & Johnson meets up on June 7. Any bump in price because of it should be taken as a chance to sell out your position, Cramer says.
June 6 is NYSE-Euronext day , and despite the hecklers Cramer is still bullish on this stock. “I believe in this stock, and I believe it’s going higher,” he says.
The earnings calendar is light, with the exception of Guess . Cramer thinks the numbers are still way to low, so the retailer should outperform. He would buy ahead of the report.
Bottom Line: For the conferences, you want ONXX, PDLI and NSC, which you should buy before its conference and sell into the conference. You might want some agriculature exposure ahead of the Merrill conference on Tuesday, and who knows, maybe you get a chance to sell JNJ into some strength next week if you have the misfortune of owning it.
Questions? Comments? firstname.lastname@example.org