5. International Expansion: Celgene is already an “international powerhouse,” Cramer said. It is full integrated with affiliate structures in more than 50 countries.
6. Balance Sheet Strength: The drug company has a “rock solid” balance sheet with $2.6 billion in cash at the end of the third quarter and had just $1.25 billion in senior debt.
7. Is It Expensive?: Celgene currently sells at 13.8 times next year’s earnings despite having a 25.5 percent long-term growth rate. To Cramer, that’s cheap.
8. Strong Management: Cramer praised CEO Bob Hugin.
9. Secular Growth: Celgene is not held hostage to economic growth because people still need pharmaceutical drugs whether or not the economy is doing well.
10. Margin Growth: Cramer thinks Celgene can grow its margins. He noted it already has a 90 percent gross margin, which is still increasing.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
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