Cramer Defends Nastech After Weakness (NSTK)

On tonight's MAD MONEY on CNBC, Jim Cramer said he has a small speculative stock that got crushed.  Nastech Pharmaceutical Inc. (NASDAQ:NSTK) is supposed to win from an intranasal delivery system, and it is controversial.  Cramer said the loss was much wider than expected and it got hit hard on Tuesday.  He'd usually say you bail out, but this one is speculative and it shouldn't really trade off of earnings yet.  It was supposed to win a $5 million milestone by P&G (NYSE:PG), but it missed the date for that milestone to go in.  It has trials going for diabetes and obesity, and the bad quarter doesn't kill its pipeline story.  Cramer even noted its autism drug study, RNA studies, and a bone density target for osteoporosis.

So Cramer interviewed Dr. Steven Quay, Nastech's Chairman, and shares traded up over 6% in after hours trading.  That is after a 5.8% gain today in regular trading.  One key note is that the company is looking at unlocking the value of its RNAi unit, and Cramer said that if the company unlocks this it will release a lot of value in the stock.

Jon C. Ogg
October 31, 2007