Medco Health and Charming Shoppes Soar On Cramer Effect

Medco Health (MHS: 48.00 -0.93%) rose 3.1% after Jim Cramer announced the stock was “the most consistent grower in the universe of stocks I follow.” On Tuesday’s Mad Money show, Cramer was clearly bullish on MedcoHealth’s ability to bring savings to customers by selling drugs in bulk. Cramer predicted that Medco could jump from $46 to $60 if the sector becomes a market leader. 

The “Cramer Effect” was also able to lift Charming Shoppes (CHRS: 4.48 +1.13%) up 4.8% after Cramer suggested that the company could be a valuable takeover target. The plus-size clothing lines of Charming Shoppes are clearly in demand as America’s waistlines continue to expand. While the stock trades at a mere $3, it has $1.32 per share in cash. In addition, falling gas prices could help boost sales and even a slight improvement in same-store sales could have a big impact on earnings. Cramer considers CHRS a speculative stock and would use limit orders when buying. 

Cliffs Natural Resources (CLF: 56.57 +0.68%) fell 3.2% after bearish comments by Mr. Cramer on yesterday’s show. Cramer called CLF “just a nasty stock” that despite the fact it is cheap is still going no where.