A Prescription for Growth?
Cramer is not a doctor, but on Wednesday gave Allscripts Health Solutionsa prognosis its stock could go higher.
Based in Chicago, the health care name provides electronic record keeping solutions to hospitals and doctors. Cramer first recommended this stock in Jan. 2009 when it was trading at roughly $8 a share. Since then, it's up 123 percent. Year-to-date, however, the stock is down about 8 percent. The stock was held up by Misys, which used to own 55 percent of Allscripts. It planned to divest most of its stake in the company, but finally sold around $225 million worth of Allscripts stock on Nov. 11.
With the $1.3 billion takeover of health care software maker Eclipsys, Cramer said Allscripts has the largest footprint in health care. It has a $45 billion addressable market and a $2.6 billion backlog. Cramer thinks its business will only grow as health care professionals opt for electronic data keeping over piles of paperwork. In addition, health care reform provides $36.5 billion for electronic medical records. Those checks haven’t gone out yet, but when they do, Cramer expects Allscripts will win big.
So what does the future have in store for this company? To find out, Cramer invited CEO Glenn Tullman back on "Mad Money." Watch the video to see the full interview.
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