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Cramer's Best Pick of 4 Health Care Stocks

With the choice of four health care stocks, Cramer on Monday picked his favorite.

The "Mad Money" host's comments came about after reading a letter from Stan, a viewer who acquired a basket of health care stocks in 2009, including Eli Lilly , Medtronic , Medicis Pharmaceutical and UnitedHealth Group . Stan asked Cramer which of these names he should trim. Eli Lilly has had problems developing drugs, but because it's a high-yielding stock, Cramer recommends selling shares over time. Cramer prefers Wellpoint over UnitedHealth. He likes Allergan over Medicis and would rather take St. Jude over Medtronic.

If he had to keep one of these stocks, though, Cramer would go with UnitedHealth.

The next letter came from Joe, who asked if PepsiCo might takeover The Hain Celestial Group . Cramer thinks Hain is doing a "pretty darn good job" on its own, but said it is an attractive takeout target because it's cheap. He didn't comment on whether Pepsi could come in, however.

The last letter came from John in Texas, who asked why Hudson City Bancorp's stock jumped on no news last week. These kinds of stocks trade on interest rates, Cramer explained. When interest rates fell last week, it helped Hudson City's large mortgage business. Being as the stock boasts a 5.4 percent dividend yield, Cramer recommends holding onto shares.

When this story was published, Cramer's charitable trust owned WellPoint.

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