See NVO's official
investor relations' site
here.
See the Yahoo!
Finance profile for
NVO
here.
After this segment, you
can see Jim's
Sudden:Death picks
here...
Jim: In this
Sunday's New York Times, and
remember, don't always read
the business section... The
front page is chock full of
great ideas... there was an
article, and in that article
it told us something
staggering...
The number of prescriptions
given to children for type
II diabetes rose 151% from
2001 to 2007... I
immediately took out my pen
and paper and said we must
make money off of this
unbelievable, sad
epidemic... but we have
to... okay... because it's
what you come to me on the
show for... I don't want to
profit off of anybody's
misery but we have a
diabetes epidemic in this
country... And now it's
infecting our kids... The
rate of type II diabetes is
increasing, this is
staggering stuff, I tell
you, I thought the article
was really eye-opening,
10-15% a year... Now, I'm
not going to harangue you
about what to feed your kids
here... although, 30% of
American children are
overweight and type II
diabetes is a terrible
disease to get...
Instead, we're going to try
and find a company, yes
indeed, to let's say,
exploit the diabetes
epidemic... Remember, it's
Mad Money... It's not Mad
Medical...
And to do this, we need to
go to the Sell Block...
Hmmm, I thought we were
going to buy something, well
wait a second... it's
because I think that's where
the best way to play the
diabetes epidemic has been
lingering... Times for a
prisoner release jailbreak,
just like I did for Martha
Stewart last week after that
quarter... People don't
think so... I think at $7
and a quarter you buy that
stock...
Now, we're releasing another
member of the Sell Block
today... and it's a foreign
company so I'm going to say
it very slow and I'll give
you symbol... It's
Novo Nordisk A/S (NVO)...
I know, confusing, because
National Oilwell Varco (NOV*)
is NOV... This is NVO...
This kind of like we're
playing Wheel of Fortune,
NVO... I told you to sell
this drug company, the top
producer of insulin in the
world, with a 52% global
market share, back on May
10th of 2007 at $51.28... It
was a tough market... I was
worried about the drug
stocks... We had a 14% gain
from where I recommended it
March 21st, and I just said
you know what?... it's
time... And the stock has
been rotting away in the
Sell Block since... although
it has done really well
while I've been negative on
the company... which is
another pretty decent reason
to let NVO go... it didn't
belong there.... and not to
mention drink cheap scotch
on my dirty linoleum floor
because we missed this
move... But you know
what?... I've got to own my
mistakes on this show... I
have to, just have to... And
if we go right through the
bottom, like I've been
saying, I'll own that too...
I have to make calls, that's
part of my job...
NVO doesn't just make
insulin... It has what I
regard as a diabetes II and
weight loss wonder drug in
its pipeline called
Liraglutide.. This is one of
the biggest drugs I have
ever seen, perceptively...
This drug is in the same
class as AMLN's Byetta... a
drug that made us lots of
money... Remember, we bought
the AMLN when we first
started the show when it was
released in 2005, and then
took profits there... NVO's
drug is a lot like Byetta,
which is made from
synthesized Ghila monster
saliva... My daughter
actually saw one of those,
we were like climbing in the
Red rocks and anyway... Well
this one seems better... and
part because it's human
based... Liraglutide is
people... But also because
unlike Byetta, which has to
be injected twice a day,
NVO's drug only needs to be
injected once a day, which
is pretty good... It's slow
release profile gives people
taking it 24 hour
coverage... while Byetta
only provides 14 hour
coverage... Which would you
rather do, stick yourself
twice or once?... I mean,
think about it...
Liraglutide's trial data and
approval should be a
gigantic catalyst for this
stock... The drug is
expected to be in the US by
the second quarter of next
year... When you have
something like that, you got
to get ahead of it now,
you've got to get way ahead
of it because it's going to
be so big... Also, we should
hear more about the drug
that NVO capital market stay
in September... again, a
very near term catalyst...
for the stock that we want
to be in ahead of... What
happens if they show the
data then?... they might...
Why do I think Liraglutide
is such a wonder drug?...
Listen to this... Back in
June, NVO released head to
head data on this stock
against AMLN's Byetta... It
showed Liraglutide was
better at controlling blood
sugar levels, caused similar
levels of weight loss... and
after 8-10 weeks, incidents
of nausea in patients on
Liraglutide to be reduced
twice as much as Byetta...
The drug works better at
doing what it's supposed to
do, controlling blood sugar
and it makes you less sick
with fewer side effects than
the competitors drug...
What's not to like?... In
fact, this drug is
apparently so good that in
mid-June, NVO released the
results of a one-year data
study on obese non-diabetic
patients... non-diabetic
people who are overweight,
to see if it was a good
weight loss drug... And
listen to these figures...
now you're going to want to
go get this on the black
market... forget that... The
average Liraglutide patient
lost 16.5-17.6 pounds... The
average patient on Zenocal,
which we know has some side
effects that are unpleasant,
the leading weight loss
medicine, dropped only
7.7-8.8 pounds... And even
better, 80% of the
Liraglutide patient who
showed signs of pre-diabetes
showed no sign after taking
the drug for one year...
This is a wonder drug...
This isn't just a diabetes
treatment... It aims to be
preventive... Again, Barack
Obama, his healthcare plan,
it is all about being
preventive... and if he gets
elected President, because
prevention ultimately lowers
healthcare costs... Obama
was emphatic about it during
the primaries... The
Liraglutide... well I've got
to tell you... That is going
to be taken up big by our
government should it enter
phase three trials for
obesity at the end of the
year...
The market for the class of
diabetes drugs Liraglutide
belongs to... it is a class
with only one other drug,
Byetta on the market... $4.4
billion dollars by 2012...
compared to just $636
million last year... And
since the number of people
with type II diabetes,
especially children ages
8-12, I think it could be
even bigger than that...
Hey, let's throw on an
anti-obesity kicker... and
then I think we could be
looking at a true major
blockbuster...
Unlike so many other big
pharma companies that I'm
afraid to recommend on the
show, NVO has got only one
drug, Prandon, scheduled to
lose its patents in 2009...
Remember, patent expiration
is why I'm not recommending
Pfizer, even though they
have a great dividend... and
this one expires 2009 only
in the US, 2011 in Europe...
This will be one off
negative gross margin
impact... it will not be
substantial.
. . . .
.
The Bottom Line!:
Novo Nordisk A/S (NVO)
at $70 short term, that's where it's
going... And who knows how much higher,
if it's diabetes/obesity wonder drug
comes out in the second quarter in
2009... I think this is your number 1
play on what obviously what you're going
to see a million articles about... This
is a diabetes epidemic... So I'm busting
it out, even though I put it in my Sell
Block... I'm busting it out of the Sell
Block right now... The stock was up $2
bucks today, you do not need to chase
it... It trades overseas... if it comes
in a little, especially on a bad
employment number, stick with some NVO.
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Final Segment 2
Final Segment
2 Title:
'Mad Mail'...
. . . .
.
Featured
Stock(s):
See comments below...
After this segment, you
can see Jim's
Sudden:Death picks
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. . . .
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Stock Snapshots - Includes
all stocks mentioned above
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Cramer's
rating on
this stock
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na
na
na
Mad Mail
General Comments
from Jim...
Jim:
Before we get
started I want
to talk about
how smart our
viewers are and
how I learn from
them every
night, earlier
in the week
someone asked us
about
Thoratec Corp. (THOR)...
He was clearly
jazzed about
it... I looked
it up and I said
gee, you know
what?... it's
going to report
this week... I'm
going to wait to
see how good the
quarter is
before I stick
my head out...
Well, how do you
like the way he
got it?... That
stock is trading
up huge after
the bell because
it reported a
monster good
quarter...
Congratulations,
you got a home
run... I learn
from you.
I respectively
disagree with
your call that
Blackberry Bold
will kill the
iPhone...
The Blackberry
has been popular
for business
users but now
the iPhone has
cooperate
exchange server
capability,
people are
trashing their
Blackberry's...
I think the
Blackberry is a
great phone, but
the market is
banking on RIMM
selling as many
as the previous
version... I
believe there
are currently
too many
downsides to
RIMM.
This is why two
sides make the
market, and I
absolutely like
that... I was
arguing with my
friend Dave Cass
today... about
the bottom... I
would argue with
you... I am
going to say
this... I did
not say that it
was going to
kill the
iPhone,
I said the
market is big
enough for both
of them.
na
na
na
Mad Mail
General Comments
from Jim...
Q:
Dear Jim,
Integrity,
passion and
chutzpah...
That's what
you've got
skee-daddy...
The one year
mark since your
first historic
rant, man, I
remember
watching it for
the first
time... I got
chills... You
were like the
financial Rocky
for us out
there, the good
one, the first
one, not Rocky
IV... Rocky III
was Clever
Lang... Thank
you from the
bottom of my
heart for
standing daily
as a voice for
honest,
hardworking
people...
Jim:
...May I just
say, I was
intemperate, but
I was concerned
myself, I am so
much less
concerned one
year later...
Now you know
what?...
Everybody is
concerned...
What does that
tell you about
everyone's
position?...
[
end of final segment ]
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In other words, this is the
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This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
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Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
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indicates he is stumped and
will have to come back to
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homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
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Jim Cramer recommends after
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