FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- Mad Mail: Buy the Berkshire Hathaway Split?
- Lightning Round: American Express, McDonald's, Frontline and More
- Lightning Round OT: Ciena, Kinder Morgan Energy and More
- Don’t Pay Up for This Trade-Down Retailer
- For Sale: Alibis for Hedge Funds
- Cramer: 5 Stocks to Play the Next Bull Run
- Cramer: Droid Disappoints, So Buy Apple
- Money-Making Mood Stabilizers
- No Product Revenues, Plenty of Risk: Buy Exelixis?
- Lightning Round: Caterpillar, Starbucks, Intel and More
MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Text Size 
Cramer’s found a medial-diagnostics company with the potential for enormous returns, he said Friday, giving investors just what they want from a speculation stock.
Sequenom [SQNM
Loading...
()
] isn’t profitable yet, but if and when its stable of prenatal genetic-testing products hits the market, Cramer thinks the upside could be tremendous.
This company is developing a noninvasive test for chromosomal abnormalities like Down syndrome and other genetic disorders. Right now, such testing is done through amniocentesis and chorionic villus sampling, both of which require sticking a needle into the womb. This could put the mother at risk of miscarriage. But Sequenom’s test, SEQureDx, merely captures cells that are eliminated in the mother's blood during gestation.
A recent study showed that SEQureDx showed no false positives and a 99.1% detection rate for Down syndrome, which is only 0.6% behind that of amniocentesis. And again, there’s no risk to the baby with SEQureDx.
This Down test will be Sequenom’s first chance to sell its technology, and there’s a huge market waiting for this product.
The American College of Obstetricians and Gynecologists in January 2007 recommended that all mothers be tested for Down, and SEQureDx could win out as the medical community’s favored method, not only for its safer results but also because it can be used as early as the first trimester. Sequenom predicts sales could reach $1.2 billion in the U.S. and $3 billion to $5 billion worldwide. If the company adds more prenatal-testing options, such as determining a baby’s gender, revenues from that could reach $450 million in the U.S. alone.
Best of all, Sequenom doesn’t need Food and Drug Administration approval to move forward. SEQureDx has been developed as a laboratory development test, or “home brew” test, and under government regulation these tests aren't subject to pre-market review by the FDA.
And there’s a catalyst here: Sequenom will release more study data on Jan. 31 at the Society for Maternal Medicine Meeting in San Diego. If those numbers are as good as SEQureDx’s study, the stock could really move, Cramer said.
The red flag to watch for is 2008 cash expenditures. Sequenom reports its fourth quarter in February, and if the company burned through more than $36 million, Cramer recommended you consider taking a pass on this stock.
The last potential driver for this stock is a takeover, and Cramer said that’s a definite possibility. If Sequenom fetches the same valuation that Third Wave did from Hologic, which wanted Third Wave’s human-papillomavirus-virus test, then this $20 stock would jump to $27, a 33% premium.
There’s no rush to rush in SQNM, though, so investors can take their time and do the requisite homework. There’s just more than a month before that new batch of study data comes out. That’s plenty of time to build a position.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes