As crisis escalates, focus on these stocks
Can't take your eyes off the crisis coverage? Then Jim Cramer says you should be watching these stocks too.
They are biotechs. That's right biotechs.
Cramer knows, "The sector has absolutely nothing to do with the mess in Eastern Europe."
But, as a pro investor, Cramer says its exactly how you should be thinking, especially if you're fascinated with the coverage.
That's because watching events too closely may spark an interest in trading the morass. And, rather than guess how events may unravel, Cramer believes a shrewd investor puts money in stocks where fundamentals are much more likely to drive gains.
What's happening in Ukraine is unpredictable but, "For the most part biotechs trade on drug trials," Cramer said.
And, although Cramer has presented many different biotech ideas on "Mad Money" in the past, right now he's got on the radar.
"Until recently I might not have called your attention to this stock simply because it's had a remarkable run," Cramer said.
Since October of 2012 shares have gained a whopping 447%.
"However, the stock got slammed after earnings, falling from $56 down to $51 in a single session." The Mad Money host can't help but wonder if the decline presents a long awaited opportunity.
The sell-off does not change the fundamentals; they remain strong. That is, Isis is a pioneer in what's known as antisense technology; drugs that work by altering the RNA in a person's cells.
"This is a huge deal because RNA is the substance that reads the blueprints of your DNA and then makes those blueprints into a reality. So if you have some kind of rare genetic disorder where your DNA contains instructions that are actually harmful to your health, Isis can fiddle with your RNA so that it doesn't deliver those bad instructions," Cramer said.
In fact, Cramer thinks drugs made by Isis have the potential to be groundbreaking. And, the profit potential may be significant; Isis has more than a few drugs in the pipeline.
"They have as many as 28 drugs in its pipeline, many of which treat rare orphan diseases, like its phase 3 drug for TTR amyloidosis, a rare genetic condition that causes progressive dysfunction in both the heart and the peripheral nervous system, or their phase 2 drug for Spinal Muscular Atrophy, another orphan condition that's the leading genetic cause of infantile death worldwide," Cramer said.
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Biotech companies such as Isis Pharma have absolutely nothing to with events in the Ukraine. Therefore, if you're glued to the TV watching the crisis unravel, Cramer thinks you should flip channels, and give this sector some viewing time too.
Call Cramer: 1-800-743-CNBC
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