GO
Loading...

Pacific Biosciences—A Spec Stock Worth the Risk?

In an ugly market, you need some speculative stocks to keep you interested, Cramer said Friday. The "Mad Money" host likes Pacific Biosciences of California in particular.

Based in Menlo Park, Calif., Pacific Bio is a $600 million company involved in the DNA sequencing market. It is a $1.2 billion business that's growing at a 20 to 25 percent compound annual growth rate through 2014, Cramer said.

DNA sequencing, by the way, is used to determine the make-up of DNA and specifically, the order of nucleotide bases in a DNA strand. Human DNA contains 3 billion of base pairs, 99.9 percent of which are identical among humans. The 0.1 percent is unique to each person and determines everything from one's hair color and height to medical conditions and so on. Researchers are interested in identifying and comparing genetic variations across peoples and populations so they can pinpoint how hereditary diseases work.

Pacific Bio was the first company to successfully commercialize single-molecule sequencing technology. Its technologies could also be used in other areas, like in the agriculture market to study genetically-modified seeds. Cramer thinks the company has a good story, but warns it's not profitable yet. While its technology is great, there's no telling whether a competitor will come in and introduce something better, he said. So this is a very speculative stock, but Cramer thinks it's worth betting on, as long as you can recognize the risk.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
PACB
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.