March 26th - CPHD VFC PDLI

Cramer went looking for the next bio tech play that could get taken over like his recent pick BSTE and recommended Cepheid (CPHD)

Closing Price: $10.87
After Hours High: $ 12.20
Percent Increase at High: 12.24%
After Hours Most Recent Price: $ 11.90
Percent Increase at Most Recent Price: 9.5%
Sector: Technology
Days to Cover: 26.2
Short %: 11.20 %
% Held by Insiders: 4.35 %
% Held by Institutions: 61.50 %
50 Day Moving Average: $8.53
200 Day Moving Average: $8.45


The stock has being "walking" the top band on the chart for the last several trading days and has an RSI over 70 which can identify an over-bought stock, all on news of an FDA clearance on March 19th. The stock was up during the day, but lost ground after hours, which could be a sign of some profit taking before the Cramer recommendation. There is a large short position in the stock with a large number of days to cover the short position. This could put keep the upward pressure on the stock and make it a scary prospect to short now. It would be hard to imagine the stock holding near 10% gains all day tomorrow, so assuming you can borrow shares to short, there may be an opportunity over $12, but if the stock goes even higher then the after hours tonight then I would stay away.

Next Cramer gave the "Benefit of the Doubt" (BOD) to VF Corp. (VFC). The stock trades north of $80, so not a price optimal for shorting in my opinion.

Finally Cramer recommended PDL BioPharma Inc. (PDLI)

Closing Price: $20.40
After Hours High: $ 21.39
Percent Increase at High: 4.85%
After Hours Most Recent Price: $ 20.90
Percent Increase at Most Recent Price: 2.45%
Sector: Healthcare
Days to Cover: 3.7
Short %: 8.95 %
% Held by Insiders: 2.14 %
% Held by Institutions: 71.20 %
50 Day Moving Average: $19.85
200 Day Moving Average: $19.64


People must have blown their money on the first pick as this one settled up only 50-cents. The price was above the top band already before Cramer mentioned it, so maybe some technical traders started letting shares go as they saw the spike after hours. Would be nice to see the high after hours achieved tomorrow morning with a similar drop afterwards.