Under the Radar: Health Care Stocks That Could Soar
Among her picks is Optimer (OPTI) -- a small cap stock -- but one that is a potential takeover candidate by big pharmaceuticals. Optimer, says Kramer, has a drug that fights infections that patients often pick up while they are in the hospital.
Another stock Kramer recommends is Parexel International (PRXL),a contract research organization, which serves biotech and pharmaceutical companies by handling their marketing and drug trials. The company has made big inroads into China where this could be a $12 billion industry.
Kramer also says that Brookdale Senior Living (BKD) is a good buy. This is a play on nursing homes and patients with illnesses such as Alzheimer's. Only 10% of this company's reimbursements come from Medicare -- so it's really a private insurance play.