Replacable Parts

Orapedic implants are going to be big business in the future. Cramer cited three companies that deal in hip, knee, and spine replacements. Zimmer (ZMH), Stryker (SYK), and Biomet (BMET). The short-term will see these three loose pricing power short term, but long-term the market is growing. The market for these companies did $22 billion worth of business in 2004 and this can only go up. Do not just buy one of these three and sit on them though. Do your homework and watch to see which one emerges as best of breed.

2 callers in this segment:
1. Laurette asked if we should go with equiptment makers or gyms? Cramer was bullish on LTM and bearish on BFT. Mixed on NLS.
2. Joanne – invest in purely medical or general health care stocks? Cramer referred to himself as Mr. UNH and then proceeded to blast JNJ as a supermarket no specific enough a market.

Leave a Response