October 3rd - ARNA ARRS

Cramer started out by talking about his call on Myogen Inc. (MYOG) which was just bought out for big gains. He then recommended Arena Pharmaceuticals Inc. (ARNA) as his next biotech pick.

Closing Price: $12.75
After Hours High: $13.86
Percent Increase at High: 8.7%
Price Level Off Point: $13.68
Percent Increase at Level Off Point: 7.3%
Trades on NASDAQ
Sector: Healthcare
Short %: 14.47%
Days to Cover: 11.1

This is not the first time Cramer has picked ARNA as he did so on February 13th 2006. The stock closed that day at $15.02 and opened at $16.11 the next day and hit a high of $16.34 at 9:31am, just after the opening bell and hit a low afterwards of $15.50 for a drop of 5.1%. Of course the past does not predict the future but I would certainly be looking at the high $13's tomorrow for a good short entry point assuming it does not break $14. Cramer was very clear to not bid this up after hours but he didn't stop people so far and isn't likely to slow them down tomorrow. I of course have the DIVX spike in the back of my mind, but don't see the same thing happening here...but watch the news in case of any buyouts in the morning!

Cramer then recommended Arris Group Inc. (ARRS)

Closing Price: $10.99
After Hours High: $11.70
Percent Increase at High: 6.5%
Price Level Off Point: $11.67
Percent Increase at Level Off Point: 6.2%
Trades on NASDAQ
Sector: Technology
Short %: 7.57%
Days to Cover: 7.3
% Held By Insiders: 3.41%
% Held By Institutions: 89.90%

Once again, anther repeat pick from Cramer. Cramer picked ARRS back on May 4th 2006 and here are the particulars from back then:

May 4th 2006
Closing Price: $12.16
After Hours High: $13.96
Percent Increase at High: 14.8%
Price Level Off Point: $12.80
Percent Increase at Level Off Point: 5.3%

The next morning ARRS peaked in the pre-market at 8:17am at a price of $12.90. It then dropped quickly at the opening bell to $12.55.

So once again the stock is lower now then it was the first time he recommended it. Last time it traded in a pretty tight range the next day but did have a small window of opportunity for a short. Again, of course, the past does not predict the future but with $12 being a nice price to watch tomorrow morning there is potential here and as I have mentioned several times, if it breaks $12 early then I would personally stay away.

Finally, on the heels of the buyout offer for Harrah's Entertainment Inc. (HET) Cramer recommended buying MGM Mirage (MGM) due to its similarites to HET. The stock closed today at $40.42, which is just outside the price range which is best for shorting Cramer's picks based on my research. With the potential in ARNA and ARRS I see little need in worrying about this pick.