CR Bard: Well Equipped For Any Market
All week Cramer has been handpicking stocks that he thinks can work even in this downright miserable environment for making money. He’s been highlighting healthcare companies – Genentech , Smith & Nephew , Becton Dickinson and Hospira so far – because they are the stocks investors flock to when the sky is falling everywhere else. On Friday’s Mad Money, he topped the list off with another healthcare play, CR Bard .
Look no further than the surge in the DRG drug index to see how these healthcare stocks are working. They’re the boring, safe, consistent companies no one cares about in a bull market, but when the tape runs red, their reliability become a whole lot more intriguing to the Street.
CR Bard is a medical equipment company, specializing in catheters for various uses, stents, guidewires and devices that help prevent the spread of hospital-associated infections.
The stock has been knocked since its high of $100 in March, partly because it had to take a big pre-tax hit from a product discontinuation. The company had received some warnings about conditions in its manufacturing facilities, but Cramer doesn’t foresee any lingering problems there.
On all other fronts, CR Bard is in good shape. One new product set to gain FDA approval later this year is Lifestent, a device for the artery in the thigh that Cramer thinks could be a good catalyst for the stock.
As for its devices that help prevent the contraction of infections in hospitals, business is booming as medical administrators look for any way possible to pay less for the costs associated with these infections. CR Bard makes it easier for doctors and hospitals to cover their medical malpractice butts.
The rotation into healthcare stocks is just beginning, as far as Cramer is concerned, and CR Bard stands to profit as the big money players become willing to pay up for the company’s consistent growth. When the market brings a stock like Bard down, Cramer just sees that as an opportunity for you to load up.
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