Stop Trading!: Billions Change Hands in Pharma
Finally, billions of dollars are being thrown around in a sector other than the financials. In the past month, Cramer pointed out, pharmaceuticals M&A activity has totaled $193 billion.
“This is the money from the sidelines that we don’t have,” he said. “It is really significant.”
Deals with Genentech , Wyeth and Schering-Plough show the drug business is holding up better than many other industries.
Cramer reiterated his call that Goldman Sachs should hold a secondary offering to raise money to pay of the company’s TARP debt. He said Goldman is in good position to take this step.
General Electric is up Thursday despite a Standard & Poor’s rating downgrade. S&P took GE’s credit rating down to AA+ from AAA. The fact that the stock withstood the bad news is a “very significant change of psychology” from the market, Cramer said.
And lastly, there’s a flurry of what seems like good news, with Apple “doing well,” Cramer said, tech as whole up for a second day, that pharma M&A activity, Citigroup’s announced profitability and Bank of America’s ramp up. BAC was up about 6% in Thursday trading.
Cramer's charitable trust owns General Electric and Goldman Sachs.
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