Needling BDX for Profits

Today, Cramer is opening up his Three Bs portfolio for Home Gamers to see. These are American companies that can withstand a slower economy, which Cramer says could come courtesy of a seemingly cold-hearted Fed chairman, namely Ben Bernanke. We already told you about CR Bard, so let’s talk about B number two: Becton Dickinson.

BDX makes needles of all kinds – syringes, insulin injection systems, catheters, disposable, medical containers, and blood collection and blood analysis gear. The company now also has an ultra fast test for staph infections and a great cervical cancer screen thanks to two great acquisitions, GeneOhm and TriPath.

The stock is up 31% since Cramer recommended it July 10, 2006, and he says it still has room to run. BDX just recorded a great quarter and increased its guidance, it’s merging TriPath with its diagnostics division, and it just left its unprofitable blood-glucose-monitoring business.

Even still, the analysts aren’t bullish. Right now there are four “buys” and eight “holds” on BDX. Cramer thinks they’re holding back, that they subscribe to the theory that they can only hand out so many “buy” ratings. Big mistake, Cramer says. A lot of companies in this sector deserve “buy” ratings because he thinks they could be going much, much higher.

Keep in mind that Cramer is rarely a bear, but until Bernanke cuts rates and gives the economy a kick it’s probably best to be in B companies.

Bottom Line: Becton Dickinson is the second B in Cramer’s three Bs, anti-trust immune, medical-device portfolio. The third is up after the Lightning Round.

Questions? Comments?