Jim Cramer: Sell Acadia, Achillion, and Ariad, But Buy This Stock

Jim Cramer made the following calls on October 10th, 2013. What do you think about his picks?

ACADIA Pharmaceuticals, Inc. (NASDAQ:ACAD): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on October 1, 2013. The stock’s 52-week high is $29.73, and its 52-week low is $1.80. Cramer said that it was time to get out of Acadia Pharmaceuticals. Though he liked the company, he said that gains of nearly 300 percent should satisfy most investors, and that at a certain point profits have to be harvested from a stock.

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Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN): Jim Cramer ranked this stock a Sell. The stock’s 52-week high is $11.36, and its 52-week low is $2.40. Cramer pointed to Achillion as a reminder for how a stock can go from a top pick in some minds into a complete slump based on one piece of news; with Achillion, that was delivered by the FDA a couple weeks ago. Cramer did not think that there was any buying opportunity in the shares at this time.

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Ariad Pharmaceuticals Inc. (NASDAQ:ARIA): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on February 27, 2013. The stock’s 52-week high is $25.40, and its 52-week low is $4.00. Cramer also highlighted Ariad in his discussion of what could go wrong with a pharmaceutical stock. After receiving bad news from the FDA just a couple days ago, the share price plummeted by about two-thirds overnight, serving as a grim reminder of what can happen in a risky sector when things do not turn out as planned.

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Ascena Retail Group, Inc. (NASDAQ:ASNA): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Sell on July 30, 2013. The stock’s 52-week high is $21.39, and its 52-week low is $15.95. Cramer sat down with David Jaffe, the president and CEO of Ascena Retail Group, who talked about the current environment and how Ascena, the owner of stores such as Dress Barn, has approached the climate. Jaffe said that many consumers in the middle have felt the squeeze of the economic downturn the most acutely, meaning that stores at the top end and stores at the bottom end have performed well. Jaffe also cited his company’s unique online ordering and delivery partnership with stores as a source of value.

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