Cramer’s Homework: This Stock Gained 200% YTD

Cramer’s Homework: Less Familiar Stocks, but Less Attractive?
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(Click for video linked to a searchable transcript of this Mad Money segment)

Sometimes Jim Cramer tells a caller that he needs to do homework before he can make a decision on a stock. And he's not kidding.

Following is Cramer's research or homework on 3 health care stocks recently called to his attention by investors who watch the TV show.

Trius Therapeutics

On June 18th Leonard From Virginia called about Trius Therapeutics, a biotech spec pick that Cramer first talked about in May.

If you're long and went into the stock after Cramer's suggestion, he now says take some money off the table; "It is up 25% since my recommendation on May 3rd," he explained.

However, the Mad Money remains a buyer on a pullback, due to his belief that the company has a promising drug in the pipeline called Tedizolid, which may be effective in the treatment of serious skin infections. "The drug will be filed before the FDA later this year and I still think the company has a solid chance at approval in 2014," Cramer said.

Cramer’s Homework: Less Familiar Stocks, but Less Attractive?
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Array Biopharma

On June 19th, Dan in Rhode Island inquired about Array Biopharma, a stock that Cramer considers a speculative biotech. It has a number of drugs in the pipeline that could be used in the treatment of diseases ranging from multiple myeloma to thyroid cancer.

"The company has 5 programs in or approaching phase 3 which means it has multiple shots on goal for a tiny $500 million market cap company," Cramer said. "Also Array sports an impressive list of partners including Novartis and AstraZeneca. Given it's a diverse pipeline, strong business relationships and gains o fonly 22% this year, which is less than peers, I bless it, but only as a spec."

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On June 26th John in New Jersey asked about Cytokinetics, a biopharma that also appears to have a promising pipeline, which includes treatments for heart failure and skeletal muscle weakness..

"They have been inking partnership deals with companies like Amgen and Astellas," Cramer explained, which is bullish, however the stock has raced up nearly 200% year to date.

Because of the substantial gains, if you're not already long, Cramer thinks you're too late. "If you don't already own it, move on and look for other opportunities."

Call Cramer: 1-800-743-CNBC

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