Since Biogen (NASDAQ: BIIB) spun off its hemophilia business into Bioverativ (: BIVVV) in January, the new company's stock has been on fire, and Jim Cramer would recommend it if it weren't for one key obstacle: competition.
"The hemophilia business is so good — and remember, the insurance companies pay for it — that many other companies are trying to get a piece of it," the " Mad Money " host said.
More innovative competitors like Shire, CSL Behring, Roche, Bayer, and Novo Nordisk are coming to the fore and putting Bioverativ's massive potential future sales at risk.
"If any of Bioverativ's competitors seem like they're onto something, this stock could get pounded," Cramer said. "We're entering an extended period where we could potentially get lots of good news about the competition, and no real, significant news about Bioverativ's own pipeline. That's not good."
So while the company has a lot of potential, Cramer worries about what may come out of its competitors to threaten the stock. And if you've researched the stock and fallen in love, you have his blessing to speculate, not invest.
Still, Cramer knows the feeling of regret in investing all too well, and he has noticed it often comes hand in hand with discipline.
While discipline can help investors stay out of trouble when the market panics or corrects, it can also drive them away from opportunities that could have made them money.
But instead of harping on not buying the right names at the right time or not waiting long enough to take profit, Cramer suggested dropping the "shoulda, coulda, wouldas" and thinking about where your portfolio is most vulnerable.
"Worry about losing money, not making money," he said. "You cut out the heavy losses and the winners take care of themselves."
Where you shouldn't lose is with the stock of CyrusOne (NASDAQ: CONE), a real estate investment trust whose clients include nine of the 10 biggest cloud companies out there. Cramer spoke with its CEO, Gary Wojtaszek, for his take on the market.
"You just look at all the big cloud companies out there, they're big companies now and they're growing at 50, 60 percent growth rates, whether it's Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), Oracle (NYSE: ORCL), and we don't see that slowing down. And the runway for continued growth should continue for probably the next decade," Wojtaszek told the "Mad Money" host on Tuesday.
The CEO added that CyrusOne, which focuses on data centers, has continued to see "buy signals" despite Wall Street bearishness on the data center space.
"We've come across our biggest year ever since we IPO'ed. We were up 33 percent last year and we expect more of the same heading into '17 and actually for the next several years, frankly," Wojtaszek said.
In light of recent buzz about automaker Tesla (NASDAQ: TSLA) passing rival Ford (NYSE: F) in market value, Cramer decided to parse the facts and determine who really came out on top.
Valuation has always been a touchy subject on the Street, and Cramer firmly believes it remains in the eye of the beholder, or in the market's case, the buyer.
"Tesla isn't worth more than Ford," Cramer said. "It's just that there are institutions who are willing to pay more for Tesla's stock than for Ford's right now, and that's the key issue here."
With the rise of giants like Apple (NASDAQ: AAPL), which has a market capitalization of $759 billion, investors are starting to care more about sales growth and expect earnings growth to follow steadily behind.
"Those are the ones who buy Tesla stock every day and many other growth stocks that to you seem overvalued," Cramer explained.
But Cramer does not advise betting against a company simply because you believe it is overvalued, even though his discipline is telling him to stay out of a stock like Tesla's.
Finally, with oil prices on the rise, Cramer took to technician Carolyn Boroden's charts to determine whether the uptick is just a one-off or if it's time to get bullish.
She noticed that oil prices have been seeing both higher highs and higher lows, a healthy trend that could mean near-term upside if the pattern repeats itself.
"As long as oil can stay above its floor of support at the $45 to $47 area, Boroden believes it can go higher, and if it clears just a few more hurdles of resistance, then she wouldn't be surprised to see if crude ends up rallying from $50 and change all the way up to $57," Cramer said.
And if oil soars, that pattern could send individual names like ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and Pioneer Natural Resources (NYSE: PXD) soaring along with it.
In Cramer's lightning round , he sped through his take on caller favorite stocks:
KeyCorp (NYSE: KEY): "Here's the problem with Key. A lot of people feel if we don't get two rate increases, the stock's going to go down. That just says more grist for the mill. I want to buy more Key. I think Key is terrific."
TherapeuticsMD Inc. (NYSE MKT: TXMD): "They just had some great Phase 3 data for the vasomotor. I think that they should come back on because [those were] really some terrific numbers. It bucked the trend for biotech."
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