What’s his proof? Merrill Lynch set a precedent for other banks by selling off its bad debt and striking an agreement with bond insurer Securities Capital Assurance. The results can be seen in Wachovia today. The stock is up to $18 from single-digit lows and could push through $19 on takeover rumors by JPMorgan Chase.
In healthcare, Cramer said to stay away from Biogen Idec and Elan. His charitable trust sold some of its Schering-Plough shares after the Food & Drug Administration rejected approval for a drug that aids in recovery from anesthesia.
Under Armour, a “crazily overvalued” stock that’s been out of favor with Cramer for some time, is now inexpensive, he said. “I no longer want to sell” UA, he said. "I think it's bottoming."
Cramer also said that Crocs is “completely and utterly finished," but Starbucks might be ready for a comeback. He likened the coffee chain to McDonald’s just before that stock turned up.
"I think in 15 months,” he said, “Starbucks will be substantially higher."
Jim's charitable trust owns McDonald's and Schering-Plough.
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