Cramer Wants to Go Back Into An Old Stock

Cramer on tonight’s MAD MONEY was discussing a stock that was taken off the table after it ran huge.   Cramer thinks that Syneron Medical (ELOS) really has the laser we’re all looking for.  He said he swaped out of it before in favor of Palomar (PMTI), but since it fell from $40 to under $25 it is cheap.  There is a catalyst coming next month that could reverse the stock drop after two bad earnings misses from higher expenses.  ELOS rolls out a dental laser next month that isn’t just cosmetic.  This one does the same thing as drilling teeth and there are 200,000 dentists versus 18,000 dermatologists.

ELOS was up a mysterious 6.8% today to $25.70 on 4-times normal volume.  Did one of Cramer’s cronies doll out a stock tip into people’s Christmas stockings or in place of Hanukkah dradles today?  This stock is up another 4.4% in after-Cramer hours.

Cramer said rumors were out there today that the company would be acquired by Allergan (AGN), so that is his explanation for the run today.  He thinks the buyer could be anyone since the company has only a $700M market cap.  He thinks the worst is over.  He nailed it once and said to take profits, but now he wants you back into ELOS.

Jon C. Ogg
December 20, 2006