Cramer's Calls on 5 Stocks
On Thursday, Cramer opened his mailbag to answer viewer questions, as well as report back on the homework he did on stocks he was asked about previously.
Apollo Investment Corp : After doing some research, Cramer thinks this business development company's 15 percent yield is a "big red flag." He thinks the current price reflects a likely dividend cut in the not-too-distant future. If you are looking for a massive yield, he suggests Annaly Capital Management , which has a 15 percent yield. For a business development company, he recommends Solar Capital , which has a 10 percent yield.
Rigel Pharmaceuticals : This could eventually be an interesting speculation, the "Mad Money" host said, but he thinks the timing is wrong. The small-cap biotech company has no products on the market right now. It's lead asset, a rheumatoid arthritis treatment, is in phase three trials and the data isn't expected until the second half of 2012. If you want to bet on Rigel, Cramer suggests coming back in a few months when it's closer to that catalyst. And if it does eventually pop, don't wait for it to run up to $25 before ringing the register.
Vantiv IPO: Cramer can't tell homegamers what to do with this payment processor because the IPO price isn't known yet.
PennyMac Mortgage Investment Trust : Why take the risk with this REIT when you can own the much safer Annaly Capital Management, Cramer asked.
The alternative energy market: More money has been lost investing in this group, Cramer said. Don't do it.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org