Cramer: 1 Healthcare Name to Avoid
Cramer started Tuesday’s “Mad Mail” by returning to ICON, a stock that Liz in California asked about just last week. He wasn’t prepared to make a call then, but after some research his is now.
The verdict? Stay away from ICON , at least for now. This company, which runs clinical trials for biotech and pharmaceutical firms, is in transition and not yet solid enough to buy. ICON reported an earnings miss with weak guidance on Oct. 4 and is seeing a high rate of cancellations as it repositions itself with customers. The one positive is that the share price has fallen to $20 and change from its near $30 peak.
There is potential here, if ICON’s repositioning pans out. Should that happen, Cramer said he would be willing to give the stock another look. But in the meantime, investors should avoid it.
The next letter came from Bill, who asked if Barrick Gold is better than Eldorado Gold . Cramer said he looks for stocks with growth and therefore prefers EGO.
Jim and Kathy told Cramer Ciena may show a profit this quarter, so they want to take profits and invest in American Tower AMT. Cramer said Ciena is good, but AMT is better.
Linda asked for Cramer's thoughts on the one-time $8 a share dividend Wynn Resorts will pay out. He doesn't like this strategy and would only recommend WYNN on the fundamentals.
Peter and Diane in New York wondered if they should hold onto Limelight Networks , even though it's recently suffered heavy losses. Cramer said the stock got overheated and recommends keeping it in the long-term as a speculative play.
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