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Jim Cramer's Action Alerts PLUS

We're putting some more cash to work this morning, in Merck. I'm picking up 500 shares of the drugmaker just after you read this note.
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Action Alerts are Now Available on Your WIRELESS Device! Click Here for Your FREE Wireless Delivery Options: https://sub.thestreet.com/mobile Dear Action Alerts PLUS Subscriber, We're putting some more cash to work this morning. I said I wanted to buy Merck (MRK) last week on television, so today is the first time I can actually make the purchase. I'm picking up 500 shares of the drugmaker just after you read this note. In the meantime the company has received a warning letter from the FDA, claiming its marketing for Vioxx downplays potentially serious side effects. I don't believe this event will materially affect sales of Merck's top painkiller, which is on track to bring in $3 billion this year. The FDA warning did knock the stock down to 20 times this year's earnings estimates though, which I think is a great entry point based on historical valuations. Some folks on Wall Street might question the strength of Merck's development portfolio, but I believe the strong balance sheet allows management to accelerate or acquire promising R%26;D ventures. Any company that can earn $3/share in this market is all right by me. The 2% dividend is just icing on the cake, especially when the Fed cuts interest rates again next week. Regards, James J. Cramer DISCLOSURE: At the time of publication, Cramer was long Merck. These Action Alerts are intended to provide opinions about and analysis of stocks and markets. They are not intended to provide personalized investment advice. DO NOT EMAIL CRAMER SEEKING PERSONALIZED INVESTMENT ADVICE, WHICH HE CANNOT PROVIDE. Cramer welcomes your editorial comments at jjcletters@thestreet.com. James J. Cramer is Markets Commentator for TheStreet.com and CNBC, and a director and co-founder of TheStreet.com. TheStreet.com is a publisher, and neither we nor Mr. Cramer is registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. From time to time, Mr. Cramer may write about stocks in which he has a position. In such cases, appropriate disclosure is made. Mr. Cramer's Action Alerts represent his own opinions and should not be relied upon for purposes of transacting securities or other investments, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. He cannot and does not assess, verify or guarantee the suitability or profitability of any particular investment. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment.