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Mar.10
7:25 PM ET
Mapping DNA's Success

Caution is king, Cramer declared during Monday's Mad Money. So only the best stocks will work in this troubled market.

Today, Cramer listed his four criteria for buying: only on an "oversold rally," in a "crescendo sell-off," if the stock has more than a 4% dividend or it's a consistent earnings deliverer with a catalyst on the horizon. Genentech [DNA  Loading...      ()   ], he said, is a good example of this last point.

The biotech company has the best growth, the least cost and the most potential for estimate increases, Cramer said. And Genentech has an analyst meeting this Friday, March 14, that should bring some good news for investors.

What could happen? Avastin sales could be better than expected. Genentech could raise its earnings forecast or pre-announce its Q1 results. Maybe DNA will raise its long-term goals higher than the 25% annual earnings per share growth the company's expecting. There could be news about an upcoming drug trial, too.

Whatever it is the company announces Friday, most likely it's just going to make this great stock better, Cramer said.

Cramer recommended DNA at $73.78, the stock closed at $78.21 Monday, and he said it could reach $100 over the next 12 months.

Oh, and there's another reason Genentech works. Biotech was the strongest group during the difficult 1990 market, which had many of the same problems we have now. Cramer said he thinks the sector, and DNA in particular, can work again.

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