Mad Mail: Throw Merck Out With Schering?

Jim: You recommended Tuesday that the viewers who own Schering-Plough should consider selling, as you did, in light of unrelenting coverage of Vytorin issues by the press. Since Vytorin is a joint venture with Merck, do you recommend selling MRK as well? --Hannah

Cramer says: “I think the stock’s anticipating that the drug will actually be pulled from the market. It’s not as big a percentage of the earnings as it is for Schering.”


Jim: Should I be worried about all of the insider selling at International Business Machines and sell my stock now? IBM still seems to have good growth potential for the next 12 months. --Todd

Cramer says: “I agree with you, Todd. This stock has come down just dramatically along with the rest of the tech. I think it’s overdone…I think IBM’s an opportunity.”


Jim: When you were at Penn State you recommended CPFL Energia…CPL recently released earnings that were solid but down from the previous year and the stock has been plummeting…My research tells me that the dividend allows us to be patient. However, I could be missing something here and your opinion on this would be really appreciated. Thanks for the investment ideas you generate on your show and the education you provide. --Denny

Cramer says: “Get a 7% yield in an emerging country that is much more stable fiscally and financially than we are, I say you pull the trigger.”


Cramer:Vertex Pharmaceuticals, the maker of Telaprevir, was one of your recommendations during Biotech Week. It was downgraded today by an Oppenheimer analyst…Does the downgrade provide enough influence to switch out of Vertex for something like Celgene? --Pat

Cramer says: “I think it’s a mistake…to sell Vertex. I think it’s terrific to buy Celgene.”


Hi Cramer!: Signs say to buy Norfolk Southern…How do you like Norfolk, even though CSX has the market? What is the main long- term objective that is driving growth? --Lisa in Illinois

Cramer says: “I have to be careful. I think a lot of the hedge funds are in these rails. They scare me, these hedge funds. A lot of them are under liquidation. I prefer CSX to Norfolk Southern because I like [CEO] Mike Ward very much” but be careful of the rails.

Jim's charitable trust owns Celgene and National Oilwell Varco.

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