JJC:   I just want a couple more days like today, a little extra money... After the shalacking we took yesterday and today's totally crazy action, a rally in the face of potential insolvencies involving everything financial... You need the Cramerican Marine Field Guide to Recessions more than ever...

Our week long series, or some would say, obsession, on how you can try to make money still in this market without worrying about oil, without worrying about Fannie Mae (FNM), Freddie Mac (FRE), whatever...

All week I've been recommending healthcare stocks as a way to play our current unhappy economic situation... Not because anything has changed in the healthcare business, but because I believe that money managers are suddenly afraid that companies in practically every other sector will miss their numbers, either because of higher raw cost or slowing economy... With healthcare stocks they've got nothing to fear... It's kind of like FDR, right?... Not even stocks themselves...

And that's why I see a sector rotation - just Wall Street jibberish for money coming out of some sectors and flowing into other ones...  In this case, healthcare...  and sending those stocks higher as the big money guys are now willing to pay a lot more for the safe, boring, consistent growth of healthcare stocks, where they don't have to worry about the earnings falling apart...
With the olympics coming up, of course on the same network as my Sunday night special, "The American Dream with Jim Cramer" at 7 pm on NBC, you will most likely catch some volleyball... They rotate in that game... Does it freak you out that they rotate?... This kind of rotation is just as much business as usual on our court as it is on that one... That's why I've been recommending healthcare stocks all week...

And it's why I'm telling you that I think Hospira Inc. (HSP) is a buy... This is a company that is penetrating new markets, and transforming itself, a transformation that I don't think the Street is paying enough attention to... HSP is going from a boring, old drug delivery and medication management company, don't buy, to one that has higher margins and a faster growing oncology segment, that in my opinion, doesn't get enough credit for...

Nobody seems to care about this company, because it was spun off from Abbott Laboratories (ABT*), a stock I recently bought for my charitable trust... ABT dumped HSP in 2004 and the company got to a rocky start, it was yeah, it was one that just upset people right from the shoot...

But now it looks like it's recovering, giving us seven straight quarters where it meet or beat the earnings expectations... HSP has got two kinds of business, boring and sexy... But even the boring ones should be good in times like this... This company is the number one maker of specialty injectable pharmaseuticals, they call them SIP's... mostly generic drugs in the United States...

Basically the company creates packages and distributes 190 generic injectable drugs in more than 900 dosages and formulations in this country... The drugs range from Anagesia, anastesia, anti-infective, cardio-vascular, and now oncology drugs, the last one is new... The company has 40 more of these so called SIP's in its pipeline...

This ain't a sexy business okay?... This is not sexy can I go and get your camera, it's a Kodak moment... Mmm, I think that's now #18...

All right, anyway, in 2006 it was $5.8 billion business, and HSP has a 17% market share, the number one player, which is nothing to frown at... One more thing about HSP's injectable business, it is poised to take over Japan as surely as McArthur in 1945... The Japanese government, which pays for 85% of Japan's healthcare costs, is making a big move to use more generic drugs... Right now, about 16% of the drugs sold in Japan are generics, compared to over 50% in the US, and 43% in Canada... The Japanese want to get their generic utilization up to 30%...

I don't like the generic drug stocks, you know that... I mean, last night I had a call on that Teva Pharmaceutical Industries Ltd. (TEVA), it's like shoes, I said ix-nay on that... But, it seems to me that HSP could be a big beneficiary here, because they're selling generic injectable drugs to hospitals, not individuals, and I think the uptake from businesses, which want to cut costs and use more generic drugs, will be a lot higher than from regular Japanese people... General perception in Japan is that generics are no good...

I think HSP is the way to play Japan's push for generic drugs...

Now, HSP is also number two in medication management systems, which is all about making electronic drug delivery pumps, saftey software, administration sets, and yes, those sets are used to deliver IV fluids... And medication, hospitals go for this stuff because it decreases medical errors, like the one props has just done here for me... This is a $1.2 billion market in 2006, and HSP has got 28% of it... These are the boring, old business...

But back on February of last year, HSP bought MAYNE, giving HSP an injectable oncology portfolio, which is much sexier than other generic injectables... It also gave the company a bigger international footprint, which should be helpful when it comes to taking over Japan... The main acquisition is all about revenue growth, 17% revenue growth just in 2007, see what I mean?...

That's the consistant growth that these portfolio managers want...

So now we got a dull, boring injectable generic drug company that has a fast growing oncology franchise, that I think is again, poised to take over Japan... HSP's management is gong-ho about cutting costs, shutting down its manufacturing facilities, consolidating them... Over the last two years the company has shut down five facilities, the last one was just in April... That's going to add $.09 to the company's 2010 earnings...

In general, HSP has been doing a great job with increasing its profitability, upping its operating margins from 14.9% in 2004, to 16.9% last year... It's targeting 19.9%... So, the margins are going up, the earnings are consistant, this is what the portfolio managers want... In the fashion show, more revenue, higher margins and Japan, this one is a triple threat... It's just two points above its 52-week low... I could see the $39 stock going to $46 easily, an 18% gain...

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