Tonight Cramer continued his quest of delivering his favorite TOP 3 SPECULATIVE STOCKS FOR 2007. Cramer started off with his #3 pick, or the second runner up for the speculative stocks.
Savient Pharma (SVNT) is his #1 pick. He said it is up $4.00 and has been on a tear. It is up against competition, and you can’t put more than 20% of your mad Money in any speculative stock and he thinks you need a basket of speculative stocks. With 20% geared toward speculative stocks, you should still have 4 others. Out of these you can expect one to scream and one to go bust. Cramer says management is good because they sold off a drug for more than it was worth then cut the number of shares with a Dutch tender. Their phase III gout drug looks promising and Cramer said there hasn’t been a gout treatment in about 40 years and there are 3 to 5 million Americans with gout. Phase II results were amazing, and if they have 35% market penetration he thinks it will be $200 million to $400 million and the stock could double.
If you want to read through to the top VALUE PICKS for 2007 that Cramer gave on Wednesday night, here is the list:
Jon C. Ogg
January 5, 2007